Global Markets:
- Asian stock markets: Shanghai Composite gained 1.60 %, Hang Seng fell 1.25 %, ASX 200 rose 0.65 %, Nikkei closed for holiday
- Commodities: Gold at $1295 (-0.05 %), Silver at $17.65 (-0.10 %), WTI Oil at $45.10 (+0.65 %), Brent Oil at $46.15 (+0.70 %)
- Rates: US 10 year yield at 1.87, UK 10 year yield at 1.87, German 10 year yield at 0.27
News & Data:
- China Caixin Manufacturing PMI (Apr): 49.4 (exp 49.8 prev 49.7)
- Australia Building Approvals (MoM) Mar: 3.7% (exp -2.0% prev 3.1%)
- Australia Building Approvals (YoY) Mar: -6.5% (exp -14.0% prev -9.0%)
- Japan Exporters Stand To Take Nearly USD 10bln Hit From Rising Yen — Nikkei
- Japanese PM Abe To Decide on Tax Hike After May G-7 Summit — Nikkei
- Asian stocks pare gains, yen extends rally – RTRS
- Oil prices rise as dollar slips to 18-month low against yen – RTRS
- Dollar sets fresh 18-month low vs. yen, Aussie awaits RBA – RTRS
Markets Update:
The Australian Dollar is rising ahead of the RBA rate decision, with AUD/USD back above 0.77 and AUD/NZD at 1.0930. The market is expecting the central bank to keep rates unchanged at 2.00 %.
NZD/USD rallied overnight and almost reached the current 2016 high at 0.7054 earlier. Should it break above, there is little resistance until 0.72. Meanwhile, USD/CAD is holding well given the broad USD weakness, mostly due to lower oil prices. The pair is consolidating around 1.2510, with 1.2497 support intact for now.
USD/JPY extended losses further and reached 106.04 overnight. Further losses seem likely and the next notable support levels lie at 105.50 and 105.15.
EUR/USD rose to a high of 1.1541 in Asia and momentum remains strong after it cleared 1.15 resistance. The charts suggest resistance now lies at 1.1620, followed by last year's high at 1.1713.
Upcoming Events:
- 09:30 BST – UK Manufacturing PMI
- 10:00 BST – Euro Zone PPI
- 17:30 BST – Bank of Canada Governor Poloz speaks
- 21:35 BST – US API Weekly Crude Oil Stock
- 23:45 BST – New Zealand Employment Change
- 23:45 BST – New Zealand Unemployment Rate
