Currency Updates:
AUD/USD
• AUD impressive despite CRB collapse and brief uptick in US rates
• Carry trades back in favor as Fed not seen hurting with rates
• Follow through on rate reversal Tuesday helps on Aus side
• 200 hma support at .7638; res at 40 dma at .7737
EUR/USD
• EUR sold far & wide as carry trade funders pile on & Fed debates hike timing
• Dudley kept June in the mix, may see strong cyclical rebound in EZ M-T
• Powell & FOMC Minutes also tending to suggest rate hikes inevitable
• EUR/USD below up TL fm Mar low; range traders eye Mar 31 1.0713 low
• Break/close below would confirm USD Index’s B/O past its dn TL today
• 2-yr DEM-USD spreads @ Mar 31 low.
USD/JPY
• USD/JPY held key Tenkan & hrly Cloud @119.58 & spiked post Fed Minutes
• Tsy curve flattened after the Minutes, lifting USD, but since receded
• Japanese foreign investment demand to support as Fed hike debate persists
• EUR/JPY dragged dn by EUR sales; Apr 1 low attracts; Kijun caps
• AUD/JPY rallies to Cloud base before backing off
• Flows, Econ report, Mach Tools Thu.
Looking Ahead – Economic Data (GMT)
• 23:30 AU AIG Construction Index Mar 44-prev
• 23:50 JP Foreign Bond Investment w/e 1017.2b-prev
• 23:50 JP Foreign Invest JP Stock w/e -35.1b-prev
• 23:50 JP Bank Lending YY Mar 2.50%-prev
Looking Ahead – Events, Other Releases (GMT)
• No Significant Events
