Currency Updates:
AUD/USD
• Rally in Europe’s morning sees 76.4 Fib of 0.7939-0.7534 hit
• Ends up the high and drifts lower into NY open, more weight added in NY
• Broad USD rally ensues post-CPI AUD/USD spikes down then drifts to 0.7646
• No further losses as USD gains erode, lift ~0.7780 late in day
• Gains likely tempered by AUD/NZD slide to 1.0110
• RBA minutes, Stevens speech & Oz CPI risks next week
EUR/USD
• Choppy European morning, 1.0738 to 1.0849 to 1.0790 into NY’s open
• Post-CPI action whippy, headline miss spikes up to 1.0849 again
• Core above f/c though, USD rallies, EUR/USD quickly down to 1.0734
• Most losses fade as USD drifts lower rest of session, 1.0800 late in day
• Light data next week, IMF w/e meeting & Eurogroup meet Apr 24 risks
• Technical’s & spreads suggest higher levels due, some eye 1.1030 area
USD/JPY
• USDJPY trades heavy on lower stocks; tech reversals in major indices
• US CPI beat-inspired rally fizzles agst 119.25
• Lowest close since late Feb, below trendline at 119.14 key break
• Mar 26 low at 118.33 next stop; Nikkei futures off 0.4%
Looking Ahead – Economic Data (GMT)
• 01:30 (SAT) CN China Hse Prices YY Mar -5.7%-prev
• 22:45 NZ CPI QQ Q1 f/c -0.2%, -0.2%-prev
• 22:45 NZ CPI YY Q1 f/c 0.2%, 0.8%-prev
• 23:30 JP Reuters Tankan DI Apr 16-prev
Looking Ahead – Events, Other Releases (GMT)
• No Significant Events
