Global Markets:
- Asian stock markets: Nikkei up 3.35 %, Shanghai Composite gained 0.05 %, Hang Seng rose 0.90 %, ASX 200 rallied 1.00 %
- Commodities: Gold at $1231 (-0.30 %), Silver at $16.21 (-0.25 %), WTI Oil at $40.90 (-0.65 %), Brent Oil at $42.60 (-0.70 %)
- Rates: US 10 year yield at 1.78, UK 10 year yield at 1.48, German 10 year yield at 0.16
RBA Minutes:
- Labour Market Noticeably Stronger Than A Year Earlier
- Data Suggest Australia Economy Grew Moderately In Early '16
- RBA Reiterates That Higher A$ Could Complicate Economic Rebalance
- Higher $A Due To Fed Rate Hike Expectations & Higher Commodities
- Low Inflation Would Provide Scope To Ease Policy Further
- Commodity Rebound Unlikely To Impact Mining Investment
News & Data:
- Bank of Korea Leaves Its Key Interest Rate Unchanged At 1.50% as Expected
- BoK Governor Lee: There Is Room For Rate Cut
- Australia ANZ Roy Morgan Weekly Consumer Confidence Index (W/E): 115.8 (prev 112.0)
- New Zealand PSI (Mar): 54.8 (prev rev 56.7)
- PBoC Fixes Yuan At 6.4700 (prev 6.4787)
- Fed’s Rosengren: Exceptionally Shallow Rate Hike Path Envisaged By Investors Not Justified — BBG
- Rosengren: Gradual Fed Rate Increases `Absolutely Appropriate'
- Rosengren: Preferred Inflation Measure Much Better This Year Than Last
- Rosengren: Expects US Jobless Rate To Continue To Drift Down
- Rosengren: Fed Will Be Raising Rates Faster Than Markets Think
- Australian PM Turnbull: Will Seek Election On 02 July After Budget Announced
- Ex-BoJ Chief Economist Hayakawa: BoJ Is Likely To Keep Policy On Hold This Month — BBG
- Hayakawa: BoJ May Increase Stimulus In July
Markets Update:
Oil prices rebounded yesterday and filled the weekend gap. This helped the Canadian Dollar to recover as well and USD/CAD fell to a low of 1.2760 overnight, 230 pips lower from yesterday's high. Support lies at 1.2740 and with the downtrend clearly intact, further losses are likely.
USD/JPY rallied along with global stock markets. The pair reached a high of 109.20 in Asia after trading as low as 107.80 yesterday morning. Offers are seen at 109.25 and in good size ahead of the 110.00 level, while bids are noted at 108.50 and 108.20.
EUR/USD has been rising slowly, but paused in Asia and consolidated in a 1.1305-25 range. GBP/USD momentum accelerated and the pair reached 1.4315 overnight. Strong resistance is noted at 1.4350, with stops resting above the level.
Upcoming Events:
- 09:00 BST – Euro Zone Current Account
- 10:00 BST – German ZEW Economic Sentiment
- 10:00 BST – Euro Zone Economic Sentiment
- 13:30 BST – US Building Permits
- 13:30 BST – US Housing Starts
- 13:55 BST – US Redbook
- 14:30 BST – RBA Governor Stevens speaks
- 15:30 BST – BoE Governor Carney speaks
- 16:00 BST – BoC Governor Poloz speaks
