Posted at 12 March 2025 / Categories Market Roundups
Market Roundup
• New Zealand Electronic Card Retail Sales (YoY) (Feb) -4.2%,-0.5% previous
• New Zealand Electronic Card Retail Sales (MoM) (Feb) 0.3%,-1.6% previous
•Japan BSI Large Manufacturing Conditions (Q1) -2.4,6.5 forecast, 6.3 previous
•Japan PPI (YoY) (Feb) 4.0%,4.0% forecast, 4.2% previous
•Japan PPI (MoM) (Feb) 0.0%,-0.1% forecast, 0.3% previous
Looking Ahead Economic Data(GMT)
•10:00 UK 10-Year Treasury Gilt Auction 4.808% previous
Looking Ahead Events And Other Releases(GMT)
•08:45 ECB President Lagarde Speaks
Currency Forecast
EUR/USD: The euro hovered near five-month highs on Wednesday as Ukraine signaled its willingness to agree to a month-long ceasefire. The United States agreed on Tuesday to resume military aid and intelligence sharing with Ukraine after Kyiv expressed support for Washington's proposal of a 30-day ceasefire with Russia, according to a joint statement from both nations.Following over eight hours of talks with Ukrainian officials in Jeddah, Saudi Arabia, U.S. Secretary of State Marco Rubio stated that the U.S. would now present the offer to Russia, putting the next move in Moscow's hands. Russian Foreign Minister Sergei Lavrov stated on Wednesday that Moscow will avoid compromises that endanger lives in any potential Ukraine peace deal, according to Russian news agencies.Immediate resistance can be seen at 1.0946 (23.6%fib), an upside break can trigger rise towards 1.0990(Higher BB).On the downside, immediate support is seen at 1.0835(38.2%fib), a break below could take the pair towards 1.0803(March 10th low).
GBP/USD: The British pound edged lower on Wednesday as worries over U.S. President Donald Trump's unpredictable trade policies continue to dampen risk appetite.President Donald Trump threatened then backed down from a doubling of steel and aluminium tariffs on Canada to 50%, after Ontario suspended plans for a surcharge on exported electricity.The dollar has sunk, Treasuries have rallied and lately stocks have suffered their heaviest selling in months as traders worry tariff and policy uncertainty will hurt U.S. growth. A British government official said Britain will not impose retaliatory trade tariffs in response to U.S. duties on all steel and aluminium imports, which are due to come into force on Wednesday. Immediate resistance can be seen at 1.2936(23.6%fib), an upside break can trigger rise towards 1.3020(Higher BB).On the downside, immediate support is seen at 1.2862(March 10th low), a break below could take the pair towards 1.2784(38.2%fib)
AUD/USD: The Australian dollar edged lower on Wednesday as global trade war concerns affected investor sentiment.Domestic data remains limited, leaving global economic events, geopolitics, and trade developments as the primary market drivers. Against the U.S. dollar the typically risk-sensitive Australian dollar has been trading sideways while markets are caught between risk aversion, as U.S. stocks sink, and a weakening U.S. dollar driven by fears of a U.S. slowdown. Investors await U.S. Consumer Price Index (CPI) data due later in the day to analyse the Fed's interest rate stance going forward this year.At GMT 06:09, The Australian dollar was last trading down 0.14% to $0.6289. Immediate resistance can be seen at 0.6324(50%fib), an upside break can trigger rise towards 0.6406(61.8%fib).On the downside, immediate support is seen at 0.6246(38.2%fib), a break below could take the pair towards 0.6192(Lower BB).
USD/JPY: The dollar gained some ground against the yen on Wednesday despite lingering concerns over the U.S. economy, as President Donald Trump's unpredictable trade policies kept markets cautious. Japan's annual wholesale inflation hit 4.0% in February, data showed on Wednesday, underscoring pressure from rising raw material costs that will keep alive market expectations of a near-term interest rate hike by the central bank. The data adds to growing signs of inflationary pressure, including from major Japanese firms offering bumper pay increases in this year's wage talks with unions.But the rise in living costs and market volatility caused by U.S. President Donald Trump's tariff threats could weigh on Japan's economy and discourage the Bank of Japan from raising rates too quickly, some analysts say . Immediate resistance can be seen at 149.06(38.2%fib) an upside break can trigger rise towards 150.94(50%fib). On the downside, immediate support is seen at 147.71(Daily low) a break below could take the pair towards 147.00(Psychological level).
Equities Recap
Asian stocks were mixed on Wednesday as renewed uncertainty over U.S. President Donald Trump's trade policies weighed on sentiment..
Japan’s Nikkei 22 was up 0.03% , South Korea's KOSPI was up 1.47 %,Hang Seng was down by 0.89 %,
Commodities Recap
Gold edged lower on Wednesday as the dollar strengthened, while investors awaited U.S. inflation data to assess the Federal Reserve’s rate cut outlook amid trade tensions and economic slowdown fears.
Spot gold fell 0.2% to $2,908.93 an ounce as of 0720 GMT, while U.S. gold futures lost 0.2% to $2,908.93.
Oil prices inched higher on Wednesday, supported by a weaker dollar, but gains were limited by growing concerns over a U.S. economic slowdown and the impact of tariffs on global growth.
Brent futures rose 13 cents, or 0.2%, to $69.69 a barrel at 0730 GMT, while U.S. West Texas Intermediate crude futures gained 13 cents, or 0.2%, to $66.38 a barrel.