Market Roundup
- RBA: At its meeting today, the board decided to leave the cash rate unchanged at 2.25 percent.
- RBA says further easing might be appropriate, data suggests growth continuing at below trend pace.
- Australia Feb Retail Sales +0.7% m/m s/adj.
- Australia March Overall Job Ads -1.4% mth/mth, s/adj.
- Australia March Newspaper Job Ads -3.6% mth/mth, s/ajd.
- Australia March Internet Job Ads -1.3% mth/mth, s/adj.
- PBOC Sets Yuan Mid-Point at 6.1305 / dlr vs last close 6.1950.
- Japan Foreign Reserves $1245.316bln at end-March ($1251.112bln at end-Feb).
Economic Data Ahead
- (0345 EDT/0745GMT) Italy Markit/ADACI Services PMI, previous 50
- (0350 EDT/0750GMT) France Markit Services PMI, previous 50
- (0350 EDT/0750GMT) France Markit Comp PMI, previous 51.7
- (0355 EDT/0755GMT) Germany Markit Comp Final PMI, consensus 55.3, previous 55.3
- (0355 EDT/0755GMT) Germany Markit Services PMI, previous 55.3
- (0400 EDT/0800GMT) Eurozone Markit Services Final PMI, consensus 54.3, previous 54.3
- (0400 EDT/0800GMT) Eurozone Markit Composite Final PMI, consensus 54.1, previous 54.1
- (0430 EDT/0830GMT) UK Markit/CIPS Serv PMI, consensus 57.0, previous 56.7
- (0430 EDT/0830GMT) Eurozone Sentix Index, consensus 20.3, previous 18.6
- (0500 EDT/0900GMT) Eurozone Producer Prices mm, consensus 0.2, previous -0.9
Key Events Ahead
- (0850 EDT/1250 GMT)Fed's Kocherlakota Speaks in Bismarck, North Dakota
- (0500 EDT/0900 GMT) B 3.500% 15/09/21
- (0500 EDT/0900 GMT) B 4.850% 15/03/26
FX Recap
USD/JPY traded flat in the Asian session around119.54 levels, having posted day's high at 119.66 levels and low at 119.42 levels so far. The yen remains vulnerable against the US counterpart ahead of the BOJ monetary policy statement to be released tomorrow, boosting the pair further. On the topside, immediate resistance is seen at 119.80 levels, and a break above would expose the 120 levels. On the flipside, support is seen at 119.22 levels and then at 118.77 levels.
AUD/USD soared higher in Asian trading and erased overnight losses, mainly on upbeat Australian retail sales data and RBA policy decision to keep the interest rate unchanged at 2.25 percent. It currently trades at 0.7689 levels and is likely to test 0.7700 levels soon. A break above would push the pair to 0.7741 levels. On the other hand, it is likely to find support at 0.7600 levels and further below at 0.7560 levels.
NZD/USD: the New Zealand dollar remained weak against the US dollar in Asia and currently trades at 0.7537 levels. The US dollar seems to be regaining strength and erasing the weak NFP induced losses. Immediate resistance is to be found at 0.7622 levels, above which gains could be extended to 0.7665 levels. On the downside, support is eyed at 0.7497 levels, and a break below would drag the pair to 0.7423 levels.
GBP/USD pared partial losses and traded in the green in Asian session. It currently trades at 1.4892 levels, with bias remaining on the upside. On the topside, next resistance is seen at 1.4962 levels and a break above would make the way for 1.50 region. On the flipside, support is located at 1.4800 levels and below that at 1.4690 levels.
EUR/USD opened at 1.0923 in Asia after seeing high selling interest from 1.0975 in the last hour of the US session. The pair bottomed at 1.0918 and subsequently met some modest buying interest in early Asia. It rose to 1.0955 through the Asian morning before easing to 1.levels. Inability to break above 1.1000 levels could see a test of key near-term support at 1.0685/1.0715 in the sessions ahead. Eurozone Composite PMI is to be released today.
