Forex Market
AUD suffers as China reports lower imports in March
Asia got busy after the long Easter weekend with a number of key data releases – and there were some surprises! China’s trade data for March astounded with a hefty surplus of $5.35 bln reported versus expectations of another deficit following the $31.48 bln printed in February.
AUD/USD Analysis
Opened in Asia at $1.0310 and after early lows of $1.0296 headed higher on demand from Funds and CTA’s, bolstered by stronger ANZ job ads data, NAB business conditions and AUD/JPY demand into the Tokyo fixing.
USD/JPY Analysis
Opened in Asia this morning at Y81.49,after trading a Y81.20-67 range yesterday, and headed higher into the Tokyo fixing on rumoured Japanese pension fund demand to highs of Y81.86. The USD later pared back to opening levels after the BOJ left rates and asset purchasing unchanged which prompted a round of EUR/JPY and AUD/JPY sales.
Good Friday = Good Payrolls?
The only real news from the Asian session was talk of a possible China Reserve Ratio Requirement cut over the weekend. This stems from the latest PBOC’s Q1 monetary policy pronouncement (released last weekend but only picked up recently due to the holidays) which called for an “appropriate increase” in money and credit compared with […]
EUR Analysis
EUR/USD closed in NY at $1.3140 after recovering from session lows of $1.31072. Rate marked lows in early Asia at $1.3136 before resuming its recovery. Offers placed to $1.3150 again provided resistance, as they had in late NY, but fresh demand triggered weak stops above to take rate overnight highs of $1.3158.
JPY Analysis
Opened in Asia at Y82.46 and continued on from NY with slippage this morning to Y82.12 following scant demand in the Tokyo fixing. Importer bids are currently sitting ahead of Y82.00 where stops are placed on a break.
GBP Analysis
Cable closed in NY around $1.5890, after rate had bounced from traded lows at $1.5833 to a session recovery high of $1.5895. Rate resumed its recovery tone into Asian trading, pushing to a high of $1.5909 (Europe high Weds) before settling between $1.5895/05 ahead of Europe.
Daily FX Technical Strategy: S(PAIN)
Eurozone issues are coming back under the spotlight ahead of the long weekend. The spread between Spanish and German 10-year yields are testing the wides of this year and European equities, particularly the Spanish Ibex index are breaking lower.
Behavioral Finance: Daily Forex Outlook: Euro traders re-adopt crisis stance
EUR USD (1.3150) Yesterday’s drop was not only due to dollar strength, but also to considerable euro weakness. Investors continued to buy dollars, supposedly pricing in the opinion that there will be no more Fed QE.
Technical Analysis – FX Daily Majors
___________________________________________________ Trade on currency with CMC Markets – Trusted FX Brokers ___________________________________________________ Today’s highlights: EURUSD: Short-term top enhanced and a more defensive sideways theme below 1.3134. Head & Shoulders top risks are resurrecting, needing a break of the “neckline”, 1.3025. GBPUSD: Small top/short-term bear reversal (back from 1.6090 barrier) reinforced with prod at 1.5842. Sideways […]
Mild recovery in risk currencies in Asia ahead of Easter break
The overall risk appetite in Asia Thursday was dictated by the Shanghai Composite Index, which pushed into the black during early trading and hence EUR and risk currencies were squeezed a touch higher.
FX Market Technical Research
EUR/USD continued to lose ground yesterday and has reached the short term support line at 1.3136. Failure here is expected and should be enough to refocus attention onto the 1.3004 recent low and then 1.2974/54, the February low and 61.8% Fibonacci retracement.