Market Roundup
- China's March Caixin manufacturing PMI at 51.0 vs. 51.7 expected, 51.6 last
- Japan Taikan Manufacturing Outlook: 20 actual, 22 expected, 21 previous
- Japan Taikan Manufacturing Index: 24 actual, 25 expected, 26 previous
Economic Data Ahead
- No major economic data releases
Key Events Ahead
- No significant event scheduled
FX Beat
DXY: The dollar index steadied ahead of the U.S. ISM Manufacturing PMI which is expected to come in at 60.0, a minor tick down from the previous reading of 60.8. The greenback against a basket of currencies trades flat at 90.01, having touched a high of 90.18 on Thursday, its highest since Mar. 21.
EUR/USD: The euro consolidated within narrow ranges amid ongoing expectations of an exit from the ECB’s stimulus. This week's focus will be the Eurozone preliminary CPIs for March, the year-on-year figure is estimated at 1.4 percent, a rise in the previous 1.0 percent reading. The European currency traded flat at 1.2317, having touched a high of 1.2476 last week, its highest since Feb. 16. Investors’ attention will remain on the U.S. construction spending and manufacturing PMI by both Markit and ISM, amid a lack of economic data from the Eurozone docket. Immediate resistance is located at 1.2355 (5-DMA), a break above targets 1.2421 (Mar. 28 High). On the downside, support is seen at 1.2283 (Mar. 29 Low), a break below could drag it lower 1.2258 (Mar. 19 Low).
USD/JPY: The dollar steadied after falling from two consecutive sessions, supported by signs China and the United States were working to avoid a trade war. Moreover, hopes for a diplomatic breakthrough over North Korea’s nuclear program strengthened investor risk sentiment. The major was trading 0.1 percent up at 106.37, having hit a high of 107.01 on Wednesday, its highest since Mar. 13. Investors’ will continue to track broad-based market sentiment, ahead of the U.S. construction spending and manufacturing PMI by both Markit and ISM. Immediate resistance is located at 106.64 (Mar. 21 High), a break above targets 107.05 (Mar. 9 High). On the downside, support is seen at 106.07 (21-DMA), a break below could take it lower 105.88 (10-DMA).
GBP/USD: Sterling rebounded after falling to a near 1-week low in the prior session, as hopes of a transition deal on Britain’s departure from the European Union which was agreed in March supported the bid tone around the British pound. Additionally, growing expectations that the Bank of England could soon raise interest rates have boosted the major to its highest since the June 2016 Brexit referendum this year. The major traded 0.1 percent up at 1.4034, having hit a low of 1.4011 last week, it’s lowest since Mar. 21. Investors’ focus will remain on U.S. fundamental drivers amid UK holiday-thinned trading. Immediate resistance is located at 1.4059 (5-DMA), a break above could take it near 1.4171 (Mar. 23 High). On the downside, support is seen at 1.3982 (Mar 20 Low), a break below targets 1.3931 (Feb. 20 Low). Against the euro, the pound was trading 0.1 percent down at 87.71 pence, having hit a low of 87.97 pence last week, it’s lowest since Mar 20.
AUD/USD: The Australian dollar declined after data showed China PMI missed expectations, recording a 4-month low for the indicator. The Chinese PMI came in at 51.0, below expectations of 51.7 and the previous period's reading of 51.6. The Aussie trades 0.1 percent down at 0.7673, having hit a low of 0.7643 on Thursday; it’s lowest since Dec. 21. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate support is seen at 0.7643 (Mar. 29 Low), a break below targets 0.7600. On the upside, resistance is located at 0.7725 (Mar. 19 high), a break above could take it near 0.7757 (Mar. 27 High).
NZD/USD: The New Zealand dollar slumped as China increased tariffs by up to 25 percent on 128 U.S. products, escalating concerns between the world’s biggest economies in response to U.S. duties on imports of aluminium and steel. China’s finance ministry announced the tariffs late on Sunday, which are to take effect on Monday, matching a list of potential tariffs on up to $3 billion in U.S. goods published by China on March 23. The Kiwi trades 0.1 percent down at 0.7227, having touched a low of 0.7188 on Thursday, its lowest level since Mar. 21. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.7255 (21-DMA), a break above could take it near 0.7274 (Mar. 24 High). On the downside, support is seen at 0.7203 (Mar 28 Low), a break below could drag it below 0.7176 (Mar 20 Low).
Equities Recap
Asian shares held firm amid holiday thinned-trading, while the dollar steadied against the safe-haven Japanese yen on perceived progress on North Korea issues.
MSCI's broadest index of Asia-Pacific shares outside Japan tumbled 0.2 percent.
Tokyo's Nikkei slumped 0.3 percent to 21,388.58 points, and South Korea's KOSPI fell 0.1 percent to 2,443.34 points.
Shanghai composite index declined 0.1 percent to 3,165.54 points, while CSI300 index was trading 0.2 percent down at 3,892.97 points.
Hong Kong’s Hang Seng was trading 0.1 percent higher at 30,241.92 points. Taiwan shares shed 0.3 percent to 10,888.27 points.
Markets in Australia, Hong Kong remained closed on account of Easter Monday holiday.
Commodities Recap
Crude oil prices edged up, boosted by a drop in U.S. drilling activity and on expectations that the United States could re-introduce sanctions against Iran. International benchmark Brent crude was trading 0.5 percent up at $69.72 per barrel by 0434 GMT, having hit a low of $68.21 on Friday, its lowest since Mar. 21. U.S. West Texas Intermediate was trading 0.4 percent up at $65.15 a barrel, after rising as high as $65.33 earlier, its strongest since Mar. 27.
Gold prices rebounded after falling to an over 1-week low in the previous session, as concerns over trade protectionism, U.S. economic policy uncertainty, and cross-market volatility weighed on market sentiment. Spot gold rose 0.3 percent to $1,329.44 per ounce at 0443 GMT, after touching a low of $1,321.12 on Friday, its lowest since Mar. 21.
Treasuries Recap
The 10-year U.S. Treasury yield last stood at 2.763 percent, after having set a 7-week low of 2.739 percent on Thursday.
The 10-year Japanese Treasury yield stood at 0.050 percent, up by 0.19 bps.
