Global Markets:
- Asian stock markets: Nikkei down 1.00 %, Shanghai Composite fell 1.15 %, Hang Seng declined 0.70 %, ASX 200 dropped 0.70 %
- Commodities: Gold at $1229 (-1.20 %), Silver at $15.33 (-1.80 %), WTI Oil at $36.95 (-0.65 %), Brent Oil at $39.20 (-0.80 %)
- Rates: US 10 year yield at 1.96, UK 10 year yield at 1.57, German 10 year yield at 0.30
News & Data:
- Bank of Japan keep rates on hold at -0.1% (expected: -0.1%), keeps monetary base at JPY 80trln (expected: JPY 80trln)
- BoJ say can add more easing if needed, will ease until 2% inflation is hit, global financial markets remain unstable
- BoJ vote 8-1 to keep monetary base unchanged at JPY 80trln vote 7-2 to keep -0.1% rate unchanged
- BoJ to exempt money reserves from negative rates; from April ETF's to increase at JPY 3.3trln annually as planned
- Australia ANZ Roy Morgan Weekly Consumer Confidence Index Mar-13: 116.4 (prev. 114.8)
- Australia New Motor Vehicle Sales (MoM) Feb: -0.1% (prev. 0.50%)
- Australia New Motor Vehicle Sales (YoY) Feb: 2.3% (prev. 5.10%)
- PBOC set USD/CNY midpoint at 6.5079 (prev. fix 6.4913)
Markets Update:
The Japanese Yen strengthened after the Bank of Japan left both rates and the size of their QE programme unchanged, despite the fact that this was expected by the market. The bank said that if it will ease further if necessary and until 2 % is hit. USD/JPY briefly rallied to 114.15 following the statement release, but then fell to 113.22. Support is seen at 113.20 and should it break below it, the next level lies at 112.60.
EUR/USD consolidated in a 1.1095-1.1115 range overnight. 1.1065-80 is a solid support area and has held so far. Resistance is noted at 1.1220 and a break above would then pave the way for a 1.1375 test. GBP/USD has come under renewed pressure and the Pound will struggle to maintain gains as Brexit fears remain present. Overnight, the pair traded in a 1.4265-1.4305 range and support is next seen at 1.4195.
The commodity currencies fell in the Asian session, with AUD/USD declining to 0.7480 and NZD/USD falling to 0.6645. AUD/USD remains in a fairly strong uptrend for now and key support is seen at 0.7420 and 0.7390.
Upcoming Events:
- 06:30 GMT – Bank of Japan Press Conference
- 07:45 GMT – French CPI
- 08:30 GMT – Swedish CPI
- 09:00 GMT – Italian CPI
- 12:30 GMT – US PPI
- 12:30 GMT – US Retail Sales
- 14:00 GMT – US Business Inventories
- 14:00 GMT – US NAHB Housing Market Index
- 21:45 GMT – New Zealand Current Account
