Global Markets:
- Asian stock markets: Nikkei down 1.45 %, Shanghai Composite gained 1.90 %, Hang Seng rose 0.80 %, ASX 200 gained 0.40 %
- Commodities: Gold at $1264 (-0.05 %), Silver at $16.10 (+0.40 %), WTI Oil at $40.25 (+0.10 %), Brent Oil at $41.50 (-0.10 %)
- Rates: US 10 year yield at 1.88, UK 10 year yield at 1.46, German 10 year yield at 0.23
News & Data:
- New Zealand ANZ Consumer Confidence (MoM) Mar: -1.40% (prev. -1.40%)
- New Zealand ANZ Consumer Confidence Index Mar: 118.0 (prev. 119.7)
- USD/CNY midpoint 6.4628 (prev. 6.4961)
- All China New Home Prices (YoY) Feb: 3.6% (prev. 2.5%)
- BOJ toyed with idea of expanding QQE, decided to keep QQE and adopt negative rates – keeping powder dry
- Asia stocks, oil jump as dollar sags after Fed – RTRS
- U.S. oil hits 2016-high on hopes for output freeze – RTRS
- Yen's Surge to Highest Since BOJ's 2014 Bazooka Unnerves Traders – BBG
- Japan 10-Year Yield Drops to Record, Below Negative Deposit Rate – BBG
- BOJ Minutes Show No Talk of More QQE Before Minus Rate Vote – BBG
Markets Update:
The US Dollar extended losses yesterday, but was able to recover slightly in the Asian session. EUR/USD fell from 1.1335 to 1.1305, while GBP/USD retraced from 1.45 to a low of 1.4454. The rally in GBP/USD looks overextended in the short-term and on-going worries about a potential Brexit are likely to cap further gains. Support is seen at 1.4350 and 1.4280, while resistance now lies at 1.4520 and 1.4580.
USD/JPY has been under heavy pressure post-FOMC and while it has been able to bounce off the 110.80 level and climb to 111.45 overnight, the outlook is bearish. Key support now lies at 110 and a break below would then suggest a decline towards 107 is likely. To the topside, expect solid resistance at 111.60 and 112.00.
AUD/USD fell from 0.7680 to 0.7635 overnight, but remains well bid and strong support is seen at 0.7580/90. NZD/USD followed the Australian Dollar lower and declined from 0.6875 to 0.6825. Support is seen at 0.6820 and then 0.6775.
Upcoming Events:
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- 12:30 GMT – Canadian CPI
- 12:30 GMT – Canadian Retail Sales
- 14:00 GMT – US Michigan Consumer Sentiment
