Market Roundup
- Japan EconMin Amari: Small stock market bubble would be welcomed, manageable, big bubble would be problem, up to BoJ to decide monetary policy, Gov Kuroda prepared to act as necessary.
- Japan March outstanding bank loans trln, +2.6% y/y, Feb +2.5%.
- Foreign CB US debt holdings +$867 mln to $3.292 trln April 8 week, Treasury holdings +$1.077 bln to $2.964 trln, agencies -$258 mln to $284.509 bln.
- Dalian iron ore futures prices off over 3% again, new contract low, market in crisis as forward prices collapse.
- China March CPI -0.5% m/m, +1.4% y/y, -0.6% and +1.3% consensus; PPI -0.1%, -4.6%, -4.8% y/y consensus.
- Australia Feb owner-occupied housing finance +1.2% m/m, +3% consensus, investment finance -3.4%.
- New Zealand govt OBEGAL toFeb 28NZ$269 mln, net debt NZ$63.54 bln, 26.7% of GDP.
Economic Data Ahead
- (0145 EDT/0545GMT) Switzerland Mar unemployment; previous 3.5% nsa, 3.2% sa.
- (0245 EDT/0645GMT) France Feb industrial output, -0.1% m/m consensus; previous +0.4%.
- (0245 EDT/0645GMT) France Feb budget balance; previous E9.4 bln deficit.
- (0300 EDT/0700GMT) Spain Feb industrial output, unch y/y consensus; previous +0.4%.
- (0430 EDT/0830GMT) UK Feb industrial output,+0.3% m/m, +0.4% y/y consensus; previous -0.1%, +1.3%.
- (0430 EDT/0830GMT) UK Feb manufacturing output, +0.4% m/m, +1.3% y/y consensus; previous -0.5%, +1.9%.
- (0430 EDT/0830GMT) UK Feb construction output,+2.0% m/m, +1.7% y/y consensus; previous -2.6%, -3.1%.
- (0830 EDT/1230GMT) US Mar import/export prices, -0.3% and -0.2% m/m consensus; previous +0.4%, -0.1%.
Key Events Ahead
- N/A G20/OECD Corporate Governance Forum in Istanbul.
- N/A Italy E6.5 bln 12-month BOT auction.
- (0300 EDT/0700GMT) Buba Dombret speech in Johannesburg, South Africa/again at (0630 EDT/1030 GMT).
- (0600 EDT/1000 GMT) BoS Gov Linde speech in Granada.
- (0845 EDT/1245 GMT) Richmond Fed Lacker speech at Sarasota event.
- (1220 EDT/1620GMT) Minny Fed Kocherlakota speech in Bloomington, Minnesota.
FX Recap
USD/JPY traded flat in the Asian session, and is hovering around120.52 levels as the greenback remains boosted by stronger-than-expected US employment data. On the topside, immediate resistance is seen at 120.63 (Today's High) levels and above which it could be pushed to 121 levels. On the flipside, support is likely to be found at 120.22 (5-DMA) below that at 120 levels.
AUD/USD opened at 0.7693 in Asia and is trying to hold above the 0.7700 levels. It posted a high of 0.7723 levels and a low of 0.7692 levels so far. On the topside, resistance is located at 0.7761 levels (the high of March 30) and a break above will push the pair to 0.7800 levels. On the flipside, support is expected to be found at 0.7640 levels (the low of April 7), and then at 0.7600 levels.
NZD/USD continued its uptrend on Friday and is currently trading at 0.7571 levels, with a high of 0.7597 levels and a low of 0.7557 levels. It might see some action today as Fed's Lacker is expected to speak about the economic outlook later in the day. The pair has resistance at 0.7600 levels and above which gains could be extended to 0.7623 levels. On the other hand, support is seen at 0.7556 (100-DMA) levels, and then at 0.7500 levels.
GBP/USD remained largely unchanged in Asia and traded in 1.4704-24 range, above the late New York spike low of 1.4684 levels. It sees resistance at 1.4974 levels, Wednesday's high, and support at 1.4685, the low of March 19.
EUR/USD seems to halting its downtrend seen in the past few sessions and traded in the green so far on Friday. It currently trades at 1.06787 levels, with a high of 1.06825 and low of 1.0650 levels. On the upside, it sees resistance at 1.0700 levels and a break above would make way for 1.0760 levels. On the downside, support is seen at 1.0635 levels and then at 1.0600 levels.
