Market Roundup
- RBA April minutes: Waiting on data to justify further rate cut, lower AUD would help economy, further decline likely on weak commodity prices.
- US official: Within grabbing distance of trade deal with Japan.
- S.Korea C.Bank says economy still on recovery trend, although weak.
- S.Korea recovery momentum has not spread to all parts of economy despite improvements -Finance Minister.
- Mexico CB Carstens: Policy coordination difficult in practical terms.
Economic Data Ahead
- (0500 EDT/0900 GMT) Germany ZEW Survey - Current Situation, consensus 56, previous 55.1
- (0500 EDT/0900 GMT) Germany ZEW Survey - Economic Sentiment, consensus 55.5, previous 54.8
- (0500 EDT/0900 GMT) Eurozone ZEW Survey - Economic Sentiment, consensus 63.7, previous 62.4
- (0830 EDT/1230 GMT) Canada Wholesale Sales mm, consensus 0.0%, previous -3.1%
- (0855 EDT/1255 GMT) US Redbook mm, previous 0.2%
- (0855 EDT/1255 GMT) US Redbook yy, previous 1.1%
- (1950 EDT/2350 GMT) Japan Exports yy, consensus 8.5%, previous 2.4%
- (1950 EDT/2350 GMT) Japan Imports yy, consensus -12.8%, previous -3.6%
- (1950 EDT/2350 GMT) Japan Merchandise Trade Balance Total, consensus, 50.0 bln yen, previous -424.6 bln yen
- (1950 EDT/2350 GMT) Japan Adjusted Merchandise Trade Balance, previous -638.8 bln yen
Key Events Ahead
- N/A UK 30-yr Bond Auction, previous 2.36%
- (0530 EDT/0930 GMT) ECB 0.05% 7-day refi, E98 bln allotment seen, last E96.5 bln.
- (0715 EDT/1115 GMT) Riksbank DepGov Ohlsson in Stockholm panel discussion.
- (1130 EDT/1530 GMT) US 4-week Bill Auction, previous 0.015%.
- (1200 EDT/1600 GMT)Buba Dombret speech in Toronto.
- (1230 EDT/1630 GMT)ECB Nouy speech in Geneva.
- (1600 EDT/2000 GMT)Canada FinMin Oliver presents latest federal budget in Ottawa.
FX Recap
USD/JPY soared higher in the Asian session, and currently trades at 119.40 levels having posted day's high at 119.49 levels so far. The upside of the pair is expected to be capped by 119.50 levels, and a break above would target 119.81 levels and then 120 levels. On the other hand, a break below 119.00 levels would drag it to 118.50 levels.
AUD/USD is hovering near the 0.77 mark post the RBA meeting minutes which said that it was appropriate to hold interest rates for the time being, while noting that further policy easing may be appropriate in the coming months. It currently trades at 0.7696 levels. Support is expected to be found at 0.7680 levels, and a break below could see the pair testing 0.7649 levels. On the flipside, resistance is located at 0.7700 levels, and a rise above could push it further to 0.7725 levels.
NZD/USD continued its downward move from yesterday on the back of a strengthening US dollar across board and currently trades at 0.7652 levels. The fall in NZD is in line with the AUD post RBA's Governor's speech yesterday. On the topside, immediate resistance is eyed at 0.7660 (Today's High) levels and above which gains could be extended to 0.7700 levels. On the flipside, support is seen at 0.7635 (Today's Low) levels, and then at 0.7600 levels.
GBP/USD moved further south on Tuesday and currently trades at 1.4890 levels. It posted a high of 1.4911 levels and a low of 1.4879 levels thus far. The immediate resistance level is eyed at 1.4945 levels and a break above could target 1.4984 levels. On the other hand, support is likely to be found at 1.4887 levels, and a break below could extend its losses to 1.4850 levels.
EUR/USD stayed largely unchanged in Asia and is trading at 1.0732 levels, closer to yesterday's close. Volume light however, participation low. Bids seen pre-1.0700, yesterday 1.0712 low, and stops sub-1.0700. Pair sees major support at 1.0625, 1.0624 4/16 spike low, stops sub-1.0620, 1.0600. Few option expiries seen on 1.07, then 1.0645-80 and large at 1.0800-10.
