Global Markets:
- Asian stock markets: Nikkei up 0.30 %, Shanghai Composite gained 0.10 %, Hang Seng rose 0.20 %, ASX rallied 0.60 %
- Commodities: Gold at $1230 (+0.10%), Silver at $15.15 (+0.15 %), WTI Oil at $36.90 (+2.75 %), Brent Oil at $38.50 (+1.75 %)
- Rates: US 10 year yield at 1.73, UK 10 year yield at 1.37, German 10 year yield at 0.10
News & Data:
- China Caixin Services PMI Mar: 52.2 (prev 51.2)
- China Caixin Composite PMI Mar: 51.3 (prev 49.4)
- Hong Kong Nikkei PMI Mar: 45.5 (prev 46.4)
- UK BRC Shop Price Index (YoY) Mar: -1.7% (prev -2.0%)
- Japan PM Abe: Should avoid competitive devaluation in FX – WSJ
- Ex-BoJ’s Iwata: BoJ unlikely to change policy in April – BBG
- Asia stocks at three-week lows as China worries grow; oil up – RTRS
- Dollar nurses deep losses vs yen after Japan PM's currency comments – RTRS
- Emerging Stocks Extend Drop as Growth Concern Offsets Oil Gain – BBG
- Yen at Strongest in 17 Months Tests Japan Resolve to Weaken It – BBG
Markets Update:
USD/JPY recovered slightly after comments from various Japanese officials showed that the BoJ is concerned about the recent JPY strength. The pair briefly traded below 110 yesterday, but is currently consolidating around 110.50 after reaching a high of 110.60 earlier. Resistance is now seen at 110.80 and 111.40.
GBP/USD remains heavy, but managed to bounce off the 1.4120 support level and rose to 1.4170 in Asia. The currency is likely to remain under pressure and test 1.4050 soon.
EUR/USD is benefiting from the risk-off environment and the Euro is the only currency that didn't fell significantly against the USD and JPY yesterday. The pair traded in a 1.1365-85 range after a strong bounce off 1.1335 support in yesterday's NY session.
AUD/USD had a sharp decline following the RBA statement, but is now approaching 0.7570 as risk sentiment has somewhat improved. NZD/USD also recovered slightly, being back above 0.68.
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