Global Markets:
- Asian stock markets: Nikkei up 0.20 %, Shanghai Composite gained 0.65 %, Hang Seng rose 1.25 %, ASX 200 declined 0.10 %
- Commodities: Gold at $1125 (+2.00 %), Silver at $17.46 (+3.15 %), WTI Oil at $49.15 (+0.60 %), Brent Oil at $52.15 (+0.65 %)
- Rates: US 10 year yield at 2.50, UK 10 year yield at 1.21, German 10 year yield at 0.41
News & Data:
- New Zealand GDP (QoQ) (Q4) 0.40% (est 0.60%, prev 0.80%)
- New Zealand GDP (YoY) (Q4) 2.70% (est 3.10%, prev 3.30%)
- Australia Employment Change (Feb): -6.4k (est 16.0K, prev 13.7K)
- Australia Unemployment Rate (Feb): 5.90% (est 5.70%, prev 5.70%)
- Australia Full-Time Employment Change (Feb): +27.1k (prev -44.5K)
- Australia Part-Time Employment Change (Feb): -33.5k (prev 58.2K)
- Australia Participation Rate (Feb): 64.60% (est 64.60%, prev 64.60%)
- Australia MI Inflation Expectations (Mar): 4.0% (prev 4.10%)
- PBOC sets USD/CNY mid-point today at 6.8862 (vs. yesterday at 6.9115)
Bank of Japan Rate Decision:
- BOJ keeps monetary policy steady
- Maintains short-term interest rate target at -0.1 %
- Maintains 10-year JGB yield target around 0 %
- Decision on yield curve control made by 7-2 vote
Markets Update:
The US Dollar weakened overnight following the Fed rate decision. The central bank hiked rates by 25 bps, as expected, but remained cautious overall and did not signal clearly when the next hike could come.
The USD weakened most against the Japanese Yen. USD/JPY declined to a low of 113.15 in Asia, down more than 200 pips from this week’s high. The outlook has turned bearish now, and a test of 122 seems likely in the near-term.
The Euro rallied above 1.07 and the positive sentiment is likely to persist today. The outcome of the Dutch election is positive both for the Euro and the European stock markets.
The Australian and New Zealand Dollar gained after the Fed announcement as well, but lost some momentum in Asia. Australia’s employment data disappointed the market, which led to a pullback to 0.7675 in the AUD/USD. Prior to that, New Zealand’s GDP figures missed expectations as well, putting the NZD slightly under pressure.
Upcoming Events:
- 08:30 GMT – SNB Rate Decision
- 08:30 GMT – SNB Statement
- 10:00 GMT – Euro Zone CPI
- 12:00 GMT – Bank of England Rate Decision
- 12:30 GMT – US Building Permits
- 12:30 GMT – US Housing Starts
- 12:30 GMT – US Philadelphia Fed Manufacturing Index
- 12:30 GMT – US Initial Jobless Claims
