Currency Updates:
AUD/USD
• Europe fails to crack 0.7550/55 support, bounce to 0.7575 at NY open
• USD weakness due to US sales data spikes pair up, HF noted USD sellers
• 10-DMA pierced & 0.7649 high hit, pullback to 10-DMA late in day
• Westpac Apr consumer conf & China Q1 GDP are risks in Asia session
• Solid data reports likely lift, April high & 55-DMA then in play
EUR/USD
• Light short covering in Europe sees pair near 1.0575 at NY open
• US sales data & IMF US 2015 & 2016 GDP cuts see US yields & USD fall
• EUR/USD hits 1.0708 high, HFs & leveraged were noted USD sellers
• 1.0710/20 (daily low, 38.2 Fib of 1.136-1.0521) zone caps
• USD bounce late in day sees pair settle near 1.0655
• ECB meeting risk tomorrow but no major change expected
USD/JPY
• USD/JPY dived toward 119 & 118.94 Cloud base on soft US Retail Sales
• Sales data still up nicely v Feb & reaction to Hamada comments overdone
• Bigger risk is if US Q2 data don’t improve enough to revive Fed hike hopes
• Abe, Hamada, Kuroda in favor of steadier yen, not big rise; QQE3 if needed
• Weekly up TL at 119.27 key on Friday’s close, daily Cloud base before that
• Japan CU, IP & Kuroda speech tonight
Looking Ahead – Economic Data (GMT)
• 22:45 NZ Food Price Index* Mar -0.7%-prev
• 00:30 AU Consumer Sentiment Apr -1.2%-prev
• 02:00 CN Urban investment (ytd)yy* Mar 13.8%, f/c 13.74%, 13.9%-prev
• 02:00 CN Industrial Output YY* Mar 6.9%, f/c 6.85%, 6.8%-prev
• 02:00 CN Retail Sales YY* Mar 10.9%, f/c 10.89%, 10.7%-prev
• 02:00 CN GDP YY* Q1 7%, f/c 7.02%, 7.3%-prev
• 02:00 CN GDP QQ SA Q1 1.4%, f/c 1.43%, 1.5%-prev
• 04:30 JP Industrial Output Rev* Feb -3.4%-prev
• 04:30 JP Capacity Util Idx Chg MM* Feb 3.6%-prev
Looking Ahead – Events, Other Releases (GMT)
• 00:30 NZ RBNZ Dep Gov Spencer will speaks on housing at the Rotorua Chamber of Commerce
• 06:15 JP BOJ Gov Haruhiko Kuroda speaks at an annual meeting of Japan’s Trust Bank Assoc
