Currency Updates:
The Australian Dollar (AUD): AUD/USD opened in NY session at 0.9390, after an Asian session sell off sparked by 0.8% drop in the Shanghai Composite Index. Higher than Expected U.S CPI gave USD a boost and the metals complex, base & precious took a hit. Copper in particular was hit hard and caused AUD/CAD sales as Australia is the 5th largest producer. Tensions in East Ukraine increased, US equities in the brief red zone. Main focus for today will be on Chinese data, a poor reading could lead AUD/USD to test 0.9290-0.93 area.
AUD/USD: Oz slumped to 0.9337 lows before recouping lost ground, heads to the close 0.9352 after bounced off 200-HMA. Support at 0.9325 and 0.9290 zone. Market awaits for Chinese data due in 02:00GMT.
EUR/USD: The pair had been going both ways throughout Europe and NY sessions. The pair held repeated attempts to break the 200 HMA at just under 1.3800, further frustrating the bears that have all but packed it in for the holiday weekend. For now, the pair seems to be unsteady, better wait for further data for better indication on the pair.
USD/JPY: Offers by 102 capped the USD/JPY again yesterday, Unlike Monday, the push was below the hourly cloud. But Nikkei tends to open higher today which could help the pair to rally above 102 area. Given today’s post Abe-Kuroda meeting comments, launching QQE2 at the late April BOJ meeting would be a surprise. Massive short yen spec positioning is banking on either the BOJ ease more, reinflation persisting and reducing real Japanese yields and the value of the Yen. USD/JPY major support at 101.20 and 100.80. Resistance at 102.25 and 102.55.
Looking Ahead – Economic Data (GMT)
• 22:45 NZD Q1 CPI y/y 1.7% v 1.6% prev
• 22:45 NZD Q1 CPI q/q 0.5% v 0.1% prev
• 22:00 CNY Mar IP y/y 9.0% v 8.6% prev
• 22:00 CNY Q1 GDP y/y 7.3% v 7.7% prev
• 22:00 CNY Mar Retail Sales y/y 12.1% v 11.8% prev
• 00:30 JPY Feb (f) IP m/m prev 3.8%; y/y prev 6.9%
• 00:30 JPY Feb (f) CU m/m prev 5.9%
Looking Ahead – Events, Other Releases (GMT)
• 06:15 Kuroda speaks in Tokyo
