Market Roundup
- Fed's Lacker repeats that a strong case is likely to remain for rate hike in June; says does not expect unusual volatility when fed does increase rates.
- IMF Chief Economist Blanchard says reform of labour market in France is "fundamental".
- China Commerce Ministry: Cannot say that foreign capital is leaving China.
- China Mar FDI (YTD) decreases to +11.3 % vs previous 17.00 %.
- Australia Mar New Motor Vehicle Sales M/M decrease to +0.5 % vs previous 2.9 %.
- Australia Mar Participation Rate increases to 64.8 % (consensus 64.6 %) vs previous 64.6 %.
- Australia Mar Full Time Employment increases to +31.5 k vs previous 10.3 k.
- Australia Mar Unemployment Rate decreases to 6.1 % (consensus 6.3 %) vs previous 6.3 %.
- Australia Mar Employment increases to +37.7 k (consensus 15.0 k) vs previous 15.6 K.
- Japan W/E Foreign Invest JP Stock increases to 1042.1 bln jpy vs previous 1036.1 bln jpy.
- Japan W/E Foreign Bond Investment increases to 215.1 bln jpy vs previous -3073.5 bln jpy.
Economic Data Ahead
- (0400 EDT/0800 GMT) Italy Global Trade Balance, previous 0.219 bln eur
- (0830 EDT/1230 GMT) US Housing Starts mm, consensus 1.040m, previous 0.897m
- (0830 EDT/1230 GMT) US Building Permits mm, consensus 1.080m, previous 1.092m
- (0830 EDT/1230 GMT) US Continuing Jobless Claims, previous 2.304
- (0830 EDT/1230 GMT) US Initial Jobless Claims, previous 281k
- (0830 EDT/1230 GMT) US Philadelphia Fed Manufacturing Survey, consensus 6.3, previous 5.0
Key Events Ahead
- (1300 EDT/1700 GMT) Fed's Lockhart Speech
- (1310 EDT/1710 GMT) FOMC Member Mester Speech
- (1330 EDT/1730 GMT) Federal Reserve Bank of Boston President Rosengren speech
- (1500 EDT/1900 GMT) Fed's Stanley Fisher Speech
FX Recap
USD/JPY reversed its losses and traded in the green on Thursday. It currently trades at 119.30 levels, having posted a low of 118.78 levels. The support at 118.70 levels is expected to limit its downward move, below which next support is to be found at 118.55 levels. On the other hand, strong resistance is located at 119.60 levels and a breach of this level could push the pair to 120.00 levels.
AUD/USD soared higher in Asia and broke above the key 0.7700 level and currently trades at 0.7760 levels and inching closer to 0.7800 levels. On the topside, a break above 0.7800 levels could see the pair testing 0.7845 levels. On the flipside, it is expected to find support at 0.7736 levels, below which it could be dragged to 0.7700 levels.
NZD/USD continued its upward trend, temporarily breaking above the 0.76 levels. It currently trades at 0.7593 levels, with a high of 0.7637 and low of 0.7576 levels. On the upside, resistance is located at 0.7600 levels and above that at 0.7620 levels. On the downside, support is seen at 0.7540 levels and a break below could extend its losses to 0.7505 levels.
GBP/USD is currently trading at 1.4832 levels with a high of 1.4879 and a low of 1.4822 levels so far. Overall bias appears bearish so far. On the downside, support is likely to be found at 1.4820 levels, and any further weakness would see the pair falling to 1.4800 levels. On the flipside, resistance is located at 1.4851 levels, above which it could extend its gains to 1.49 levels.
EUR/USD remained pressured in the Asian session and trades at 1.0686 levels before climbing to 1.0745 levels. The pair has immediate support at 1.08618 levels and a break below would expose 1.058 levels. On the other hand, resistance is located at 1.07 levels and a break above would extend its gains to 1.0750 levels.
