Global Markets:
- Asian stock markets: Nikkei gained 0.20 %, Hang Seng rose 0.25 %, Shanghai Composite and ASX 200 both up 0.15 %
- Commodities: Gold at $1281 (-0.20 %), Silver at $18.15 (-0.10 %), WTI Oil at $51.20 (+0.60 %), Brent Oil at $53.35 (+0.75 %)
- Rates: US 10-year yield at 2.21, UK 10-year yield at 1.06, German 10-year yield at 0.20
News & Data:
- New Zealand CPI (QoQ) (Q1): 1.00% (est 0.80%, prev 0.40%)
- New Zealand CPI (YoY) (Q1): 2.20% (est 2.00%, prev 1.30%)
- Australia NAB Business Confidence (Q1): 6 (prev 6)
- PBOC fixes yuan at 6.8792, weakens most since March 29
- Asian stocks set for cautious start on weak U.S. cues – RTRS
- Oil prices claw back ground after sharp drop, buoyed by U.S. crude stock dip – RTRS
Markets Update:
Asian stock markets recovered slightly after several days of losses. However, sentiment remains mixed as investors are nervous ahead of the French election over the weekend. Further, geopolitical risks are also weighing on the market.
The US Dollar regained some strength. EUR/USD fell back to 1.0710 in Asia, while GBP/USD declined to 1.2770 after Tuesday's two percent rally. Support is now seen at 1.2750 and again ahead of 1.27. The Pound is likely to remain bid in the near-term.
Meanwhile, USD/JPY briefly broke back above 109, but momentum is still weak. Strong resistance is seen at 109.20/30, followed by 109.80.
The New Zealand Dollar was the strongest currency overnight. New Zealand inflation data beat expectations and NZD/USD rallied from 0.70 to 0.7045. The Australian Dollar managed to benefit a bit from the NZD flows as well, and rose from 0.7490 to 0.7510.
Upcoming Events:
- 13:30 GMT – US Initial Jobless Claims
- 13:30 GMT – US Philadelphia Fed Manufacturing Index
