Market Roundup
- New Zealnd PM Key: NZD likely to decline further against USD, skeptical about intervention though any decisions are for the RBNZ.
- South Korea central bank leaves policy unchanged, Governor says closely monitoring JPY/KRW movements, suggests possible intervention sub-9.
- Japan MoF flow data week-ended April 4 - Japanese buy net Y424.4 bln foreign stocks, sell trln bonds, Y94.7 bln bills; foreign investors buy net trln Japanese stocks, Y998.6 bln bonds, sell Y798.5 bln bills.
Economic Data Ahead
- (0200 EDT/0600 GMT) Germany Industrial Production YY, previous 0.9
- (0200 EDT/0600 GMT) Germany Trade Balance sa, consensus 20, previous 19.7
- (0430 EDT/0830 GMT) UK Feb trade balance, GBP9.0 bln deficit eyed; last bln deficit.
- (0430 EDT/0830 GMT) UK Trade Balance non-EU, previous GBP -1.745bln GBP
- (0830 EDT/1230GMT) US weekly initial jobless claims, 285k consensus; previous 268k.
- (1000 EDT/1400 GMT) US Feb wholesale inventories, sales, +0.2%, +0.1% m/m consensus; previous +0.2%, -3.3%.
Key Events Ahead
- (0400 EDT/0800 GMT) Greek FinMin Varoufakis speech at Paris conference.
- (0430 EDT/0830 GMT) Spain @E2/1.5/1.5 bln 0.5/1.65/5.15% 2017/25/44 Bono auctions.
- (0700 EDT/1100 GMT) UK BOE Interest Rate Decision, consensus 0.5, previous 0.5.
FX Recap
USD/JPY continued its uptrend and is hovering at 120.27 levels trying to sustain its move above the 120 mark. The greenback remains boosted by hawkish FOMC minutes as Fed officials were divided on a June rate hike. On the topside, immediate resistance is seen at 120.39 (Today's High) levels and above it is likely to test 120.50 levels. On the flipside, support is likely to be found at 120 and then at 119.86 (50-DMA) levels.
AUD/USD extended its upward move in the Asian session, as Aussie was boosted by upbeat Australian construction data. The AIG Performance of Construction Index rose to 50.1 in March. Next resistance is seen at 0.7729 (April 8 High) levels, above which it could extend its gains to 0.7762 (March 29 High) levels. On the downside, support is located at 0.7660 levels and a break below could drag the pair to 0.7649 (5-DMA) levels.
NZD/USD remained lifted in the mid-Asian session, mirroring the surge seen in the Aussie, while broad USD strength due to hawkish FOMC minutes limits the upside. It currently trades at 0.7556 levels, having posted day's high at 0.7559 levels and low at 0.7525 levels. The pair has next resistance at 0.7600 levels and a break above will push the pair to 0.7623 levels. On the flipside, support is seen at 0.7527 levels and then at 0.7500 levels.
GBP/USD soared higher in the Asian session and trades at 1.4870 levels at present. It will see some action today as the UK trade balance data is due later in the day. It is expected to continue its choppy trades in 1.48-1.49 levels. A break below 1.48 levels will take the pair to 1.4740 levels, while a break above 1.49 levels will make the way for 1.50 levels.
EUR/USD remained under pressure continued its move downwards in Asia on broad-based US dollar strength. It currently trades at 1.0773 levels, with day's high at 1.0787 levels and low at 1.0759 levels. Overall bias stays with the bears. However, support at 1.0717 level (last week's low) is expected to limit its fall. A break below could push the pair to 1.0682 levels. On the other hand, resistance is located at 1.0780 levels and then at 1.0800 levels.
