Global Markets:
- Asian stock markets: Nikkei down 0.80 %, Shanghai Composite fell 1.60 %, Hang Seng declined 0.90 %, ASX 200 lost 0.70 %
- Commodities: Gold at $1268 (+0.30 %), Silver at $15.58 (-0.65 %), WTI Oil at $37.45 (-1.20 %), Brent Oil at $40.25 (-1.50 %)
- Rates: US 10 year yield at 1.88, UK 10 year yield at 1.482, German 10 year yield at 0.23
News & Data:
- China Trade Balance (Feb) USD32.59Bln (exp USD51.00Bln prev USD63.29Bln)
- China Exports (YoY) Feb: -25.4% (exp -14.5% prev -11.2%)
- China Imports (YoY) Feb: -13.8% (exp -12.0% prev -18.8%)
- Japan GDP SA (QoQ) Q4, F: 0.3% (exp -0.4% prev -0.4%)
- Japan GDP Annualised SA (QoQ) Q4, F: -1.1% (exp -1.5% prev -1.4%)
- Japan GDP Private Consumption (QoQ) Q4, F: -0.9% (exp -0.8% prev -0.8%)
- Japan GDP Business Spending (QoQ) Q4, F: 1.5% (exp 1.2% prev 1.4%)
- Japan BoP Current Account Balance (Jan): JPY 520.8Bln (exp JPY 715.5Bln prev JPY 960.7Bln)
- Japan BoP Trade Balance (Jan): JPY -411.0Bln (exp JPY -530.0Bln prev JPY 188.7Bln)
- Australia NAB Business Conditions (Feb): 8 (prev 5)
- Australia NAB Business Confidence (Feb): 3 (prev rev 3)
- Australia ANZ Roy Morgan Weekly Consumer Confidence Index (W/E 06 Mar): 114.8 (prev 111.3)
- UK BRC Sales Like-For-Like (YoY) Feb: 0.1% (exp 0.5% prev 2.6%)
- PBoC Fixes Yuan At 6.5041 (prev 6.5113)
- RBA'S Lowe: Low Inflation Provides Scope For Easier Policy
- Lowe: Easing Abroad Is Complication, Puts Upward Pressure On A$
- Lowe: GDP Report Confirmed Household Spending Picked Up
- Lowe: A$ Drop Helping Adjustment To Commodity Price Fall, As Well As Tourism
- Lowe: Would Be Helpful To Have Slightly Lower Currency
Markets Update:
The US Dollar and Japanese Yen strengthened overnight against the other major currencies as the risk appetite increased and stock markets fell. The commodity currencies came under pressure and AUD/USD fell from 0.7470 at the Sydney open to a low of 0.7420. Key support is seen at 0.7380, followed by 0.7325. Given that the pair is overbought in the short-term, a retracement to at least 0.7325 seems likely. USD/CAD rallied overnight as oil prices retraced some of the earlier gains. The pair started the new trading day around 1.3280 and made it to a high of 1.3340 in Asia. Keep in mind that the Bank of Canada will decide on interest rates tomorrow. While they are likely to keep rates unchanged, they could mention the recent CAD strength.
EUR/USD was quiet overnight and consolidated in a 1.1010-30 range. The focus is on the ECB meeting on Thursday and volatility is usually subdued ahead of that key event. GBP/USD traded in 1.4242-70 range overnight and resistance is now seen at 1.43 and 1.4350. Meanwhile, USD/JPY price action remains choppy. It first climbed from 113.30 to 113.50 in the early Asian session, then fell to 112.80 as stocks opened lower, but eventually rallied back to 113.20.
Upcoming Events:
- 06:45 GMT – Swiss Unemployment Rate
- 07:00 GMT – German Industrial Production
- 07:45 GMT – French Trade Balance
- 08:15 GMT – Swiss CPI
- 09:15 GMT – Bank of England Governor Carney speaks
- 10:00 GMT – Euro Zone GDP
- 13:15 GMT – Canadian Housing Starts
- 13:30 GMT – Canadian Building Permits
