Currency Updates:
AUD/USD
• Bid from Asia carries over into NY open, ~0.7985 as NY gets going
• Bulls press further on ADP miss as US Tsy yields & USD sink
• Stops >0.8020 run & new trend high (0.8040) made
• Yield & USD rebound see steady sales, some adding to shorts
• Near 0.7945/55 support late in day, Oz jobs risk due
• If upbeat April high to be tested ahead of RBA SMP
EUR/USD
• Choppy action in Europe morning, pair near 1.1225 into NY open
• ADP misses & sinks USD & Tsy yields, EUR/USD spikes higher
• Brief pause into 1.12 barrier but dips shallow & barrier breaks
• 1.1368 hit before dip, talk reserve bids 1.1320-1.1290, dip ~1.1316 bought
• Fed’s Lockhart dovish tip aids push to 1.1370, ~1.1350 late in day
• Short covering to persist ahead of NFP, if data weak more EUR/USD gains
• Test of Feb high likely on a soft US jobs report
USD/JPY
• USD/JPY fell below the Cloud as risk-off flows & soft US data dominated
• Yellen & Lockhart failed to calm run from long USD, stock & bond trades
• N225 futures breached the up TL from last Oct; Japan returns tonight
• 2-yr yld spreads highest since Mar 17, but due to USD selling
• EUR/JPY odd major gainer on crosses; short EUR squeeze relentless
• Next hurdles there in the 136.67-70 range
Looking Ahead – Economic Data (GMT)
• 23:30 AU AIG Construction Index Apr 50-prev
• 01:30 AU Employment Apr f/c 5.0k, 37.7k-prev
• 01:30 AU Full Time Employment Apr 31.5k -prev
• 01:30 AU Participation Rate Apr f/c 64.8%, 64.80%-prev
• 01:30 AU Unemployment Rate Apr f/c 6.2%, 6.10%-prev
Looking Ahead – Events, Other Releases (GMT)
• No Significant Events
