Currency Updates:
AUD/USD
Bull action persists in Europe’s morning post-Stevens speech
NY opens ~0.7950 and stay firms early on
Soft USD, lifts in iron-ore, rebar & copper aid to keep rally going
Stop run above 0.7950/60 accelerates lift, pair tests key 0.8025 area
Series of daily lows highs nearby, break sees more pain for bears
FOMC risk looms, if dovish gains likely; Techs suggest higher levels due
EUR/USD
Firm EUR crosses & CB (Asia, M/E) EUR/USD buys lift in Europe’s morning
NY opens ~1.0940, dips sub-1.0920 on early USD bid, dip bought
USD rally turns & broad based sales ensue even as US yields lift
EUR/USD tests >1.0990, offers into 1.10 & FOMC combine to halt lift
Only small pullback as pair near 1.0975 late in day
If Fed dovish 1.1060/70 likely breaks, 1.1175/85 then eyed
USD/JPY
USD/JPY holds dreary range by 118.94 Cloud base after poor US Conf data
Higher USD-JPY yield spreads offset by weaker stocks
Scant hope of BOJ QQE3 Thurs or by Jul; Oct still favored if CPI remains weak
EUR/JPY above 130.43 Cloud base; Greek fears recede, EUR shorts covered
GBP/JPY past down TL fm Dec, AUD/JPY past Mar hi & 38.2% of Oct-Feb drop
Looking Ahead – Economic Data (GMT)
• 22:45 NZ Trade – Imports Mar f/c 4.06b, 3.87b-prev
• 22:45 NZ Trade Balance Mar f/c 341.0m, 50.0m-prev
• 22:45 NZ Trade Balance YY Mar f/c -2.74b, -2.18b-prev
• 22:45 NZ Trade – Exports Mar f/c 4.40b, 3.92b-prev
• 01:00 NZ NBNZ Business Outlook Apr 35.80%-prev
• 01:00 NZ NBNZ Own Activity Apr 42.20%-prev
Looking Ahead – Events, Other Releases (GMT)
• No Significant Events
