Global Markets:
- Asian stock markets: Nikkei up 1.80 %, Shanghai Composite gained 0.30 %, Hang Seng rose 2.65 %, ASX 200 rallied 1.85 %
- Commodities: Gold at $1228 (-0.10 %), Silver at $16.27 (-0.10 %), WTI Oil at $49.26 (+1.30 %), Brent Oil at $49.18 (+1.15 %)
- Rates: US 10 year yield at 1.86, UK 10 year yield at 1.48, German 10 year yield at 0.18
News & Data:
- Australia Completed Construction Work (QoQ) Q1: -2.6% (exp -1.5% prev -3.6%)
- Australia Skilled Vacancies (MoM) Apr: 0.6% (prev -1.2%)
- New Zealand Trade Balance (Apr): NZD 292 Mln (exp NZD 25 Mln prev NZD 117 Mln)
- NZ Exports (Apr): NZD 4.30 Bln (exp NZD 4.08 Bln prev NZD 4.20 Bln)
- NZ Imports (Apr): NZD 4.01 Bln (exp NZD 3.98 Bln prev NZD 4.09 Bln)
- Singapore GDP (YoY) Q1, F: 1.8% (exp 1.9% flash 1.8%)
- PBoC Fixes Yuan At 6.5693 (prev 6.5468)
- China Weakens Yuan Fixing To Lowest Since March 2
- YouGov/Times UK Poll On EU Shows 41% Remain, 41% Leave
- BoJ Gov Kuroda: No Plan To Change 2% Price Target
Markets Update:
The US Dollar declined slightly overnight, with commodity currencies the best performers. AUD/USD bounced off 0.7145 yesterday and finished the day around 0.7185. In Asia, it remained bid and extended gains to 0.7210 later in the session. Resistance is seen at 0.7250 and 0.73.
NZD/USD started the day around 0.6735, rallied to 0.6765, fell back to the session low and then eventually made it back to 0.6765. Resistance is seen at 0.6770, followed by 0.6840.
USD/CAD came under pressure overnight, as oil prices rallied, and fell from 1.3140 to 1.31. Support is noted at 1.3020.
The Euro managed to find support at 1.1135 and recovered to 1.1150 in Asia, but remains weak overall and rallies are likely to be sold. Resistance is seen at 1.1180 and 1.1230, while the next significant support level lies at 1.1050.
USD/JPY failed to benefit from the improvement in risk appetite and rising equity markets and fell from 110.20 in the early session to 109.95.
Upcoming Events:
- 09:00 BST – German IFO Business Climate Index
- 09:00 BST – German IFO Business Expectations
- 13:30 BST – US Trade Balance
- 14:00 BST – US House Price Index
- 14:45 BST – US Services PMI
- 15:00 BST – Bank of Canada Rate Decision
- 15:30 BST – US Crude Oil Inventories
- 16:40 BST – FOMC Member Kashkari speaks
- 19:00 BST – FOMC Member Kaplan speaks
