Market Roundup
- NZD hits record highs against AUD.
- Japan Abe: Kuroda honeymoon soured by fiscal friction.
- US Treasury Sec Lew: Strong USD good for the US.
- Greek leader likely to face criticism on first Berlin visit.
- Greek leader warns Merkel of impossible debt payments.
- New Zealand Q1 consumer confidence index 117.4, Q4 114.8.
Economic Data Ahead
- (0700 EDT/1100 GMT) UK Mar CBI trends survey - orders index, 9.0 consensus; previous 10.0.
- (0830 EDT/1230 GMT) US Feb Chicago Fed national activity index; previous 0.13.
- (1000 EDT/1400 GMT) US Feb existing home sales, 4.9 mln units AR consensus; previous 4.82 mln.
- (1000 EDT/1400GMT) US Feb existing home sales, +1.7% consensus; previous -4.9%.
- (1100 EDT/1500 GMT) Eurozone Mar consumer confidence index - flash, -5.95 consensus; previous -6.70.
Key Events Ahead
- N/A German Chanc Merkel, Greek PM Tsirpas meeting in Berlin.
- N/A Cleveland Fed Mester, ECB/BdF Noyer speak at Paris conference.
- N/A UK DMO quarterly consultations with GEMMs, end-investors.
- N/A Germany E1.5 bln 12-mo Bubill, France 3/6/12-mo BTF auctions.
- (0600 EDT/1000 GMT) ECB Coeure speech at Podgorica, Montenegro event.
- (0700 EDT/1100 GMT) Belgium E2.8-3.5 bln 0.8/4.25/3.75% 2025/41/45 OLO auctions.
- (1000 EDT/1400GMT) ECB Pres Draghi parliamentary testimony.
- (1130 EDT/1530 GMT) FOMC ViceChair Fischer speech at New York Economic Club luncheon.
FX Recap
EUR/USD fell back to 1.0784 after the Tokyo open, from 1.0883 seen in very early Antipodean trading, before breaking above 1.0800 levels. The pair now appears to be capped ahead of large, bln vanilla 1.0850-strike option expirations. Some bids are seen at 1.0800 levels and move down to 1.0780 levels, below which stops are expected.
USD/JPY posted a low of 119.81 in early Antipodean dealings before jumping to 120.12 as Tokyo returned. As USD weakness elsewhere accelerated in the afternoon, USD/JPY plunged, taking out trader stops sub-119.80 for a low of 119.75 before firming again. Resistance is seen at 120.50 where large option expiries are seen ($402 mln).
AUD/USD opened at 0.7778 in Asian session and oscillated between 0.7765-0.7807. On Friday, it closed below its high of 0.7802, it stayed relatively boosted with regard to Friday's 0.7644 Asia low. It was supported by the 1.5% rise in the CRB index and 4% increase in copper on Friday.
GBP/USD fell back to 1.4918 levels from 1.4990 levels on scant volume. Large option expiries seen at 1.4925 (1.202 bln) helped limit the downward move and enables the market to bounce later.
NZD/USD opened at 0.7560 in Asian trading, after hitting fresh highs against both AUD and EUR offshore on Friday. Strong consumer sentiment data was helped the pair in early Asian session along with USD supply. It broke above the Friday's 0.7592 high and extended to 0.7598 before reverting. It rose higher to 0.7664 in late Sydney as AUD/NZD collapsed.
