Posted at 07 March 2019 / Categories Market Roundups
Market Roundup
Economic Data Ahead
Key Events Ahead
FX Beat
DXY: The dollar index held gains after ADP National Employment Report showed U.S. private payrolls increased by 183,000 in February after surging 300,000 in January, indicating the pace of job gains remains more than enough to drive the unemployment rate down. The greenback against a basket of currencies traded flat at 96.88, having touched a high of 97.01 on Tuesday, its highest since February 19. FxWirePro's Hourly Dollar Strength Index stood at 60.93 (Bullish) by 0500 GMT.
EUR/USD: The euro consolidated near a 2-week low hit in the previous session as investors remained cautious ahead of the European Central Bank's policy meeting due later in the day. The ECB is likely to cut growth forecasts and is expected to take tentative steps to combat an economic slowdown. The European currency traded 0.05 percent down at 1.1304, having touched a low of 1.1285 the day before, its lowest since Feb. 19. FxWirePro's Hourly Euro Strength Index stood at -43.43 (Neutral) by 0500 GMT. Investors’ attention will remain on Eurozone gross domestic product, employment change, and ECB interest rate decision, ahead of the U.S. unemployment benefit claims, consumer claims and Fed Brainard's speech. Immediate resistance is located at 1.1341 (Feb. 13 High), a break above targets 1.1371 (Feb. 20 High). On the downside, support is seen at 1.1275 (Feb. 19 Low), a break below could drag it till 1.1234 (Feb. 15 Low).
USD/JPY: The dollar declined, extending previous session losses, as signs of tension between the United States and North Korea, and renewed fears of a slowdown in global growth sent investors seeking safety in the safe-haven assets. The major was trading 0.1 percent down at 111.67, having hit a high of 112.13 on Tuesday, its highest since December 20. FxWirePro's Hourly Yen Strength Index stood at 147.06 (Highly Bullish) by 0500 GMT. Investors’ will continue to track the broad-based market sentiment, ahead of U.S. unemployment benefit claims, consumer claims and Fed Brainard's speech. Immediate resistance is located at 112.20, a break above targets 112.60 (Dec. 20 High). On the downside, support is seen at 111.32 (Mar. 1 Low), a break below could take it lower at 110.66 (Feb.28 Low).
GBP/USD: Sterling steadied near a 1-week low as a deadlock over Brexit stoked concern that a vote on Prime Minister Theresa May's proposed deal for Britain's departure from European Union could be delayed. The major traded 0.1 percent up at 1.3178, having hit a low of 1.3097 on Tuesday; it’s lowest since Feb.26. FxWirePro's Hourly Sterling Strength Index stood at -3.89 (Neutral) 0500 GMT. Investors’ attention will remain on developments surrounding Brexit deal, ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.3254 (March 4 High), a break above could take it near 1.3288 (Feb.26 High). On the downside, support is seen at 1.3093 (Feb. 26 Low), a break below targets 1.3011 (Feb. 20 Low). Against the euro, the pound was trading 0.1 percent down at 85.77 pence, having hit a low of 86.45 on Tuesday, it’s lowest since Feb 26.
AUD/USD: The Australian dollar rebounded from a fresh 2-month low after data showed Australia posted its second biggest trade surplus on record in January at A$4.5 billion, surpassing forecasts of A$3.0 billion. However, soft retail sales figures limited the upside. The Aussie trades 0.2 percent up at 0.7045, having hit a low of 0.7020 earlier; it’s lowest since Jan. 4. FxWirePro's Hourly Aussie Strength Index stood at -16.66 (Neutral) by 0500 GMT. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate support is seen at 0.6993 (Jan.4 Low), a break below targets 0.6965. On the upside, resistance is located at 0.7150 (Feb. 22 High), a break above could take it near 0.7206 (Feb. 21 High).
NZD/USD: The New Zealand dollar retreated from a 3-week low as investors narrowed the odds on rate cuts. The Kiwi trades 0.2 percent up at 0.6784, having touched a low of 0.6752 the day before, its lowest level Feb. 13. FxWirePro's Hourly Kiwi Strength Index was at 52.84 (Bullish) by 0500 GMT. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.6853 (Feb. 22 High), a break above could take it near 0.6941 (Feb. 1 High). On the downside, support is seen at 0.6719 (Feb. 12 Low), a break below could drag it below 0.6706 (Feb. 22 Low).
Equities Recap
Asian shares slumped, amid persisting concerns in the market as investors awaited some kind of resolution to U.S.-China trade negotiations.
MSCI's broadest index of Asia-Pacific shares outside Japan edged down 0.2 percent.
Tokyo's Nikkei declined 0.8 percent to 21,428.93 points, Australia's S&P/ASX 200 index rose 0.3 percent to 6,263.90 points and South Korea's KOSPI eased 0.8 percent to 2,157.87 points.
Shanghai composite index fell 0.1 percent to 3,099.56 points, while CSI300 index traded 1.2 percent down at 3,802.11 points.
Hong Kong’s Hang Seng traded 0.8 percent lower at 28,805.73 points. Taiwan shares shed 0.5 percent to 10,311.68 points.
Commodities Recap
Crude oil prices surged amid ongoing OPEC-led supply cuts and U.S. sanctions against exporters Venezuela and Iran, although record U.S. crude output and rising commercial fuel inventories limited upside. International benchmark Brent crude was trading 0.6 percent up at $66.25 per barrel by 0410 GMT, having hit a high of $67.11 on Friday, its highest since February 25. U.S. West Texas Intermediate was trading 0.4 percent higher at $56.37 a barrel, after rising as high as $57.85 on Friday, its highest since the November 16.
Gold prices consolidated near a 1-1/2 month low touched earlier in the week, amid concerns over global growth and tepid equity markets. Spot gold trades flat at $1,286.19 per ounce by 0422 GMT, having touched a low of $1,281.08 on Tuesday, its lowest since January 25. U.S. gold futures were flat at $1,288.10 an ounce.
Treasuries Recap
The yield on Australia’s benchmark 10-year note, which moves inversely to its price, slumped 2 basis points to 2.077 percent, the yield on the long-term 30-year bond also fell nearly 2 basis points to trade at 2.643 percent and the yield on short-term 2-year traded nearly 1-1/2 basis points lower at 1.677 percent by 04:00GMT.
The New Zealand government bonds gained, sending yields 4.5 basis points lower at the long end of the curve.
The Canadian government bond prices were higher across the yield curve, with the 10-year rising 50.4 Canadian cents to yield 1.820 percent. The 10-year yield touched its lowest intraday since June 2017 at 1.790 percent.