Global Markets:
- Asian stock markets: Nikkei down 0.40 %, Shanghai Composite gained 0.05 %, Hang Seng fell 0.30 %, ASX 200 rose 0.40 %
- Commodities: Gold at $1245 (+0.15 %), Silver at $17.28 (+1.00 %), WTI Oil at $44.45 (+1.00 %), Brent Oil at $46.00 (+1.00 %)
- Rates: US 10 year yield at 1.91, UK 10 year yield at 1.67, German 10 year yield at 0.30
News & Data:
- Australia CPI (QoQ) Q1: -0.2% (exp 0.2% prev 0.4%)
- Australia CPI (YoY) Q1: 1.3% (exp 1.7% prev 1.7%)
- Australia CPI Weighted Median (QoQ) Q1: 0.1% (exp 0.5% prev 0.5%) -Australia CPI Weighted Median (YoY) Q1: 1.4% (exp 1.9% prev 1.9%)
- Australia CPI Trimmed Mean (QoQ) Q1: 0.2% (exp 0.5% prev 0.6%) -Australia CPI Trimmed Mean (YoY) Q1: 1.7% (exp 2.0% prev 2.1%)
- China Industrial Profits (YoY) Mar: 11.1% (prev -4.7%)
- China Westpac-MNI Consumer Sentiment (Apr): 117.8 (prev 118.1)
- Australia ANZ Roy Morgan Weekly Consumer Confidence Index (W/E 24 Apr): 111.7 (prev 115.8)
- New Zealand Trade Balance (Mar): NZD 117 Mln (exp NZD 401 Mln prev NZD 339 Mln)
- New Zealand Exports (Mar): NZD 4.20 Mln (exp NZD 4.65 Bln prev NZD 4.25 Bln)
- New Zealand Imports (Mar): NZD 4.09 Mln (exp NZD 4.28 Bln prev NZD 3.91 Bln)
- RBA May Rate Cut Odds Rise To 40% From 14% Yesterday — BBG
- Asia stocks subdued with central banks in focus, oil holds gains – RTRS
- Oil prices jump on weak dollar, strong investor appetite – RTRS
Markets Update:
The Australian Dollar fell sharply against all other major currencies after inflation numbers arrived lower than expected. AUD/USD declined from 0.7750 to a low of 0.7629, while AUD/NZD fell from 1.1250 to 1.1085 and AUD/JPY from 86.30 to 84.75. Chances for a RBA rate cut next month have increased from 14 % to 40 %, according to Bloomberg.
In AUD/USD, support can be expected at 0.7620 and 0.7585, with the big level being 0.75. AUD sentiment has already turned bearish, but much will depend on the FOMC minutes tonight. More hawkish than expected comments from the Fed could easily push AUD/USD below 0.75.
USD/JPY consolidated in a 111.02-35 range overnight, while EUR/USD traded between 1.1295 and 1.1310. GBP/USD was caught in a 1.4568-95 range.
Upcoming Events:
- 07:00 BST – German GfK Consumer Climate
- 09:00 BST – Euro Zone M3 Money Supply
- 09:30 BST – UK GDP
- 15:00 BST – US Pending Home Sales
- 15:30 BST – US Crude Oil Inventories
- 19:00 BST – FOMC Statement
- 22:00 BST – RBNZ Interest Rate Decision
- 22:00 BST – RBNZ Statement
