Posted at 11 April 2019 / Categories Market Roundups
Market Roundup
Economic Data Ahead
Key Events Ahead
FX Beat
DXY: The dollar index steadied after plunging to a near 2-week low in the prior session as minutes from Federal Reserve's March 19-20 meeting showed policymakers agreed to be patient about any changes to interest rate policy as they saw the U.S. economy weathering a global slowdown without a recession in the next few years. The greenback against a basket of currencies traded 0.05 percent up at 96.93, having touched a low of 96.85 on Wednesday, its lowest since Mar. 28. FxWirePro's Hourly Dollar Strength Index stood at -100.36 (Highly Bearish) by 0500 GMT.
EUR/USD: The euro rose, extending previous session gains after ECB President Mario Draghi raised the prospect of more support for the struggling eurozone economy if its slowdown persisted. The European currency traded 0.5 percent up at 1.1279, having touched a high of 1.1287 on Thursday, its highest since Mar. 26. FxWirePro's Hourly Euro Strength Index stood at 5.84 (Neutral) by 0500 GMT. Investors’ attention will remain on data from the Eurozone economies, ahead of the U.S. producer price index, unemployment benefit claims and Fed officials' speech. Immediate resistance is located at 1.1331 (Mar. 25 High), a break above targets 1.1361 (Mar. 19 High). On the downside, support is seen at 1.1213 (Mar. 28 Low), a break below could drag it till 1.1176 (Mar. 7 Low).
USD/JPY: The dollar bounced, halting a 3-day losing streak after data released yesterday showed U.S. consumer prices increased by the most in 14 months in March. Moreover, the risk sentiment improved as Federal Reserve policymakers debated possible policy moves the central bank could make after it ends its balance sheet reduction programme by September. The major was trading 0.1 percent up at 111.07, having hit a low of 110.84 on Wednesday, its lowest since Apr. 1. FxWirePro's Hourly Yen Strength Index stood at 17.99 (Neutral) by 0500 GMT. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. producer price index, unemployment benefit claims and Fed officials' speech. Immediate resistance is located at 111.44 (Apr. 1 High), a break above targets 111.92 (Mar. 6 High). On the downside, support is seen at 110.53 (Mar. 20 Low), a break below could take it lower at 110.01 (Mar. 28 Low).
GBP/USD: Sterling steadied above the 1.3100 handle, after European Union leaders gave Britain six more months to leave the EU bloc, indicating that Britain will not crash out on Friday without a treaty to smooth its passage. The major traded 0.1 percent up at 1.3106, having hit a low of 1.2986 on Friday; it’s lowest since Mar. 29. FxWirePro's Hourly Sterling Strength Index stood at 97.39 (Slightly Bullish) 0500 GMT. Investors’ attention will remain on the U.S. fundamental drivers, amid a lack of economic data from the UK docket. Immediate resistance is located at 1.3121 (Apr. 5 High), a break above could take it near 1.3149 (Apr. 1 High). On the downside, support is seen at 1.3030 (Apr. 9 Low), a break below targets 1.3003 (Mar. 21 Low). Against the euro, the pound was trading flat at 86.09 pence, having hit a low of 86.51 on Tuesday, it’s lowest since Mar. 22.
AUD/USD: The Australian dollar eased after rising to a 6-week peak in the previous session after data showed the Chinese consumer price index declined 0.4 percent in March from 1.0 percent. The Aussie trades 0.1 percent down at 0.7161, having hit a high of 0.7174 on Tuesday; it’s highest since Feb. 27. FxWirePro's Hourly Aussie Strength Index stood at 156.26 (Highly Bullish) by 0500 GMT. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate support is seen at 0.7070 (Mar. 29 Low), a break below targets 0.7041 (Mar. 14 Low). On the upside, resistance is located at 0.7168 (Mar. 21 High), a break above could take it near 0.7198 (Feb. 27 High).
NZD/USD: The New Zealand dollar edged lower after rising for three straight sessions, as the greenback rebounded from a near 2-week low. The Kiwi trades 0.1 percent down at 0.6758, having touched a low of 0.6718 on Friday, its lowest level Jan. 22. FxWirePro's Hourly Kiwi Strength Index was at 111.58 (Highly Bullish) by 0500 GMT. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.6799 (Apr. 4 High), a break above could take it near 0.6827 (Mar. 5 High). On the downside, support is seen at 0.6706 (Jan. 22 Low), a break below could drag it below 0.6668 (Jan. 4 Low).
Equities Recap
Asian shares tumbled, drifting further away from 8-month highs as European and U.S. central banks reinforced investor worries about the global economic outlook and trade protectionism.
MSCI's broadest index of Asia-Pacific shares outside Japan declined 0.3 percent.
Tokyo's Nikkei rose 0.1 percent to 21,711.38 points, Australia's S&P/ASX 200 index fell 0.4 percent to 6,198.70 points and South Korea's KOSPI surged 0.05 percent to 2,224.44 points.
Shanghai composite index declined 1.5 percent to 3,192.41 points, while CSI 300 index traded 2.1 percent down at 4,000.83 points.
Hong Kong’s Hang Seng traded 0.7 percent lower at 29,888.92 points. Taiwan shares shed 0.6 percent to 10,808.77 points
Commodities Recap
Crude oil prices declined as U.S. crude stockpiles surged to their highest levels in almost 17 months amid record production, while economic concerns raised doubt over growth in demand for fuel. International benchmark Brent crude was trading 0.2 percent down at $71.41 per barrel by 0458 GMT, having hit a high of $71.76 on Wednesday, its highest since Nov. 8. U.S. West Texas Intermediate was trading 0.3 percent down at $64.25 a barrel, after rising as high as $64.77 on Tuesday, its highest since the Nov. 1.
Gold prices eased, but were trading close to a 2-week peak recorded in the prior session as dovish U.S. and European central banks fanned concerns on economic slowdown. Spot gold was down 0.1 percent at $1,306.97 per ounce by 0503 GMT, having touched a high of $1,310.47 on Thursday, its highest since March 28. U.S. gold futures were down about 0.3 percent at $1,310.20 an ounce.
Treasuries Recap
The Japanese government bond prices were mostly firmery, with the 40-year yield hitting a 2-1/2-year low. The benchmark 10-year cash JGB yield fell half a basis point to minus 0.065 percent. In the super-long zone, the 40-year yield shed two basis points to 0.525 percent, its lowest level since early October 2016. The 30-year fell 1.5 basis points to 0.510 percent, while the 20-year yield dropped half a basis point to 0.340 percent.
The Australian government bond futures were quiet, with the three-year bond contract flat at 98.6000. The 10-year contract rose 1.5 ticks to 98.1350.
The yields on New Zealand's two-year bonds at 1.53 percent remain well below the 1.75 percent cash rate.
The Canadian government bond prices were higher across a flatter yield curve, with the two-year rising 4.5 Canadian cents to yield 1.581 percent and the 10-year climbed 37 Canadian cents to yield 1.687 percent.