Currency Updates:
The Australian Dollar (AUD): AUD/USD opened lower this morning to one month low of 0.8894 due to tensions between Russia and Ukraine. During the weekend, the disappointing Chinese manufacturing PMI increased the possibility of an easier monetary policy stance which added weight for the pair. Today, the pair will be focusing on the HSBC PMI that will be released 01:45GMT and tomorrow we get building approvals along with RBA meeting.
AUD/USD: Range trade still in play, current support at 0.8880-0.8900, market will be focusing on HSBC PMI, a poor data could break through support, testing 0.8830.
EUR/USD: Once again, all focus are Ukraine & Russia issue, which led to a gap lower in Asia open to a low of 1.3753. However, a better than expected CPI from last friday helped the pair pushed above 1.3800. Major resistance at 1.3865/95, if this breaks, we will see little resistance until 1.4255.
USD/JPY: Correlation between the Nikkei and S&P broke down. Bulls failed to push higher even though S&P blasted into new record territory on the back of beats in Chicago PMI and Consumer confidence from last week. The pair gapped lower as investors moves to safe heaven, JPY, causing the pair dropped to a low of 101.30 in early Asia.
Looking Ahead – Economic Data (GMT)
• 21:45 NZ Terms of trade qtr Q4 f/c 2.00%, 7.50%-prev
• 21:45 NZ Terms of trade – exp vol Q4 f/c 8.00%, -2.10%-prev
• 21:45 NZ Terms of trade – imports Q4 f/c -1.00%, 1.20%-prev
• 21:45 NZ Terms of trade – exports Q4 f/c 1.00%, 8.90%-prev
• 23:50 JP Business capex (MOF) yy Q4 1.50%-prev
• 23:30 AU TD-MI inflation gauge Feb 0.10%-prev
• 00:30 AU Business inventories Q4 f/c -0.20%, -0.50%-prev
• 00:30 AU Gross company profits Q4 f/c 2.00%, 3.90%-prev
• 00:30 AU Company profits pre-tax Q4 12.60%-prev
• 00:30 AU ANZ newspaper job ads Feb -1.40%-prev
• 00:30 AU ANZ internet job ads Feb -0.20%-prev
• 01:00 CN NBS manufacturing PMI Feb f/c 50.10%, 50.5%-prev
• 01:00 CN NBS N-Mfg PMI Feb 53.4-prev
• 01:45 CN HSBC Mfg PMI Final Feb 48.3-prev
