Global Markets:
- Asian stock markets: Nikkei down 0.10 %, Shanghai Composite gained 1.05 %, Hang Seng declined 0.40 %, ASX 200 lost 0.15 %
- Commodities: Gold at $1257 (-0.10 %), Silver at $18.25 (-0.40 %), WTI Oil at $51.30 (+0.55 %), Brent Oil at $54.40 (+0.45 %)
- Rates: US 10 year yield at 2.35, UK 10 year yield at 1.07, German 10 year yield at 0.27
News & Data:
- Australian AIG Services Index Mar: 51.7 (prev 49.0)
- Japanese Nikkei PMI Services Mar: 52.9 (prev 51.3)
- Japanese Nikkei PMI Composite Mar: 52.9 (prev 52.2)
- New Zealand ANZ Commodity Price Index (MoM) Mar: 0.4% (prev 2.0%)
- South Korean BoP Current Account Balance (USD) Feb: 8400.2M (prev 5377.8M)
- South Korean BoP Goods Balance (USD) Feb: 10545M (prev 7814M)
- UK BRC Shop Price Index (YoY) Mar: -0.8% (exp -0.8%; prev -1.0%)
- PBoC Fixes USDCNY Reference Rate At 6.8906 (prev fix 6.8993 prev close 6.8835)
- Asian stocks rise as China gains; oil up on North Sea outage – RTRS
- Oil rises on signs of gradual tightening in global supply – RTRS
Markets Update:
Another quiet trading session in Asia. There were only minor movements in the major currency pairs. USD/JPY reached a high of 110.90 in the early session, inspired by gains in the Japanese stock markets. However, the pair came under pressure shortly after the Shanghai Open and eventually declined back to 110.50. The short-term outlook is negative and a test of 110 should follow soon.
The Australian Dollar bounced off the 200 DMA around 0.7550, but failed to recover much. Support there looks fragile, and a test of 0.75 seems likely in the near-term. The Aussie Dollar is suffering from weak risk appetite in the markets, and the slightly dovish RBA minutes yesterday increased the pressure on the currency.
Upcoming Events:
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- 08:55 GMT – German Services PMI
- 09:00 GMT – Euro Zone Services PMI
- 09:30 GMT – UK Services PMI
- 13:15 GMT – US ADP Nonfarm Employment Change
- 14:45 GMT – US Markit Services PMI
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- 15:30 GMT – US Crude Oil Inventories
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