Currency Updates:
U.S. Dollar Trading (USD) more risk aversion in the European session was reversed in New York as bargain hunters entered the stock market and this helped weaken the USD. News remained negative however so the bounce may be temporary and we might see more USD strength next week. Looking ahead, March Chicago PMI forecast at 63 vs. 64 previously. March UoM Consumer Confidence is forecast at 74.7 vs. 74.3 previously.
The Euro (EUR) the EUR/USD tested deeper below 1.3300 during the European session overnight after reports of Spanish bonds coming under pressure after a massive general strike. Also negative was talk Greece would could default on railway bonds guaranteed by the government.
The Japanese Yen (JPY) USD/JPY fell back in risk aversion during Europe with EUR/JPY coming under heavy selling pressure. The EUR/USD rally later in the day sent the USD weaker against most of the market. Support is seen at Y81.80 with the market now searching for support.
The Sterling (GBP) the resilient pound brushed off the risk aversion and is looking to rally and test 1.6000 today. UK data has been mixed with FEB mortgage approvals dropping to 49k vs. 57.9k previously. Crosses though remain supportive with EUR/GBP back under 0.8350. Looking ahead, German Retail Sales forecast at 1.2% vs. -1.6% previously.
Australian Dollar (AUD) the AUD/USD hit new month lows near 1.0300 before rebounding with the change of mood in US trade. The outlook is negative with the China slowdown story a main theme. On the weekend we see the March Chinese PMI’s released and this will help set the mood for next week.
Oil & Gold (XAU) Gold took a third leg lowerto dip below $1650 before USD weakness later in the allowed a move back to $1663 resistance. Oil fell sharply near $3 a barrel with the downtrend spooking the buyers and sending them fleeing for the exit. Support was found at $102 before rebounding to $103.
