Market Roundup
- Trump predicts trade concessions by China, despite rising tensions
- China unlikely to sell off U.S. debt in trade dispute - China govt think tank researcher
- China vice premier says will win battle against financial risk -Xinhua
- China c.bank adviser says will take time for China to stablise leverage level
- UK firms more optimistic after Brexit transition deal-Deloitte
- No NAFTA deal in principle to be announced at Lima summit-sources
Economic Data Ahead
- (0330 ET/0730 GMT) Great Britain Mar Halifax house Prices MM, 0.20% eyed, 0.40% last
- (0430 ET/0830 GMT) EZ Apr Sentix Index, 20 eyed; 24 last
Key Events Ahead
- (0900 ET/1300 GMT) ECB Vice President Vitor Constancio presents the ECB Annual Report 2017 at the ECON Committee-Brussels, Belgium
- (1245 ET/1645 GMT) ECB Executive Board member and chief economist Peter Praet participates in a meeting of the European Finance Forum e.V.-Frankfurt
FX Beat
DXY: The dollar index steadied after falling from a 1-month peak hit in the previous session on U.S. nonfarm payrolls report that showed an increase of just 103,000 jobs in March, the smallest gain since last September. The greenback against a basket of currencies trades 0.1 percent up at 90.15, having touched a high of 90.60 on Friday, its highest since Mar. 1. FxWirePro's Hourly Dollar Strength Index stood at -93.72 (Slightly Bearish) by 0500 GMT.
EUR/USD: The euro eased as investors awaited German trade balance and Eurozone Sentix investor confidence for clues on the strength of the economy. Moreover, the renewed tension between China and the U.S. kept investors on the edge. The European currency traded 0.05 percent down at 1.2275, having touched a low of 1.2215 on Friday, its lowest since Mar. 1. FxWirePro's Hourly Euro Strength Index stood at 49.17 (Neutral) by 0500 GMT. Investors’ attention will remain on series of data from the German trade balance and Eurozone Sentix investor confidence. Immediate resistance is located at 1.2314 (10-DMA), a break above targets 1.2344 (Apr. 2 High). On the downside, support is seen at 1.2239 (Mar 20 Low), a break below could drag it lower 1.2215 (Apr. 6 Low).
USD/JPY: The dollar steadied after declining in the previous session on data that showed the U.S. economy created the fewest jobs in six months in March. Moreover, concerns about the U.S.-China trade dispute continued to weigh on market sentiment. The major was trading 0.1 percent up at 106.97, having hit a high of 107.49 on Friday, its highest since Mar. 28. FxWirePro's Hourly Yen Strength Index stood at 49.17 (Neutral) by 0500 GMT. Investors’ will continue to track broad-based market sentiment, amid a lack of economic data from the U.S. docket. Immediate resistance is located at 107.29 (Mar. 13 High), a break above targets 107.52 (Feb. 28 High). On the downside, support is seen at 106.70 (5-DMA), a break below could take it lower 106.37 (10-DMA).
GBP/USD: Sterling held firm after rising to an over 1-week peak in the previous session, as the Bank of England confirmed a policy of monetary tightening would be sooner rather than later. Moreover, Britain securing a transition deal to cover the 21-month period after it leaves the European Union continued to support investor sentiment. The major traded 0.1 percent up at 1.4096, having hit a high of 1.4105 the day before, it’s highest since Mar. 28. FxWirePro's Hourly Sterling Strength Index stood at 43.25 (Neutral) by 0500 GMT. Investors’ focus will remain on UK Halifax house prices and Like-for-Like retail sales. Immediate resistance is located at 1.4171 (Mar. 23 High), a break above could take it near 1.4200 (Mar. 28 High). On the downside, support is seen at 1.4053 (5-DMA), a break below targets 1.4012 (Mar 30 Low). Against the euro, the pound was trading 0.05 percent up at 87.09 pence, having hit a high of 87.07 pence on Friday, it’s highest since Mar 22.
AUD/USD: The Australian dollar rose after Australian Industry Group’s (AiG) Performance of Construction Index advanced 57.2 in March from previous 56.0, indicating conditions on the short and medium term in the construction market improved. The Aussie trades 0.3 percent up at 0.7691, having hit a high of 0.7726 on Thursday; it’s highest since Mar. 27. FxWirePro's Hourly Aussie Strength Index stood at 18.69 (Neutral) by 0500 GMT. Investors will continue to track overall market sentiment, amid a lack a lack of data from both the continents. Immediate support is seen at 0.7643 (Mar. 29 Low), a break below targets 0.7600. On the upside, resistance is located at 0.7743 (Mar. 23 high), a break above could take it near 0.7783 (Mar. 22 High).
NZD/USD: The New Zealand dollar rebounded from previous session lows, as investors tried to gauge whether rising tariff tensions between the United States and China had the potential of exploding into a trade war. The Kiwi trades 0.4 percent up at 0.7298, having touched a high of 0.7322 on Thursday, its highest level since Mar. 15. FxWirePro's Hourly Kiwi Strength Index was at 161.05 (Highly Bullish) by 0500 GMT. Investors’ will continue to track broad-based market sentiment, ahead of NZIER Business confidence index. Immediate resistance is located at 0.7334 (Mar. 15 High), a break above could take it near 0.7365 (Feb. 22 High). On the downside, support is seen at 0.7258 (Mar. 27 Low), a break below could drag it below 0.7231 (Feb 27 Low).
Equities Recap
Asian shares advanced as a bounce in U.S. stock futures boosted sentiment, while the greenback steadied as U.S. President Donald Trump kept up his twitter war with China.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.7 percent.
Tokyo's Nikkei rose 0.5 percent to 21,678.26 points, Australia's S&P/ASX 200 index surged 0.4 percent to 5,808.70 points and South Korea's KOSPI gained 0.6 percent to 2,442.99 points.
Shanghai composite index rallied 0.2 percent to 3,138.15 points, while CSI300 index was trading 0.05 percent up at 3,854.85 points.
Hong Kong’s Hang Seng was trading 1.4 percent higher at 30,255.57 points. Taiwan shares added 0.7 percent to 10,893.53 points.
Commodities Recap
Crude oil prices rose after slumping around 2 percent in the previous session on concerns over an intensifying trade dispute between the United States and China and increased U.S. drilling activity. International benchmark Brent crude was trading 0.5 percent up at $67.39 per barrel by 0459 GMT, having hit a low of $66.86 on Wednesday, its lowest since Mar. 20. U.S. West Texas Intermediate was trading 0.6 percent up at $62.31 a barrel, after falling as low as $61.84 on Friday, its weakest since Mar. 19.
Gold prices eased as investors awaited fresh developments on the simmering trade war between the United States and China. Spot gold declined 0.1 percent at $1,332.35 an ounce as of 0503 GMT, after touching a low of $1,319.36 on Friday, its lowest its Mar. 21. U.S. gold futures were unchanged at $1,335.80 an ounce.
Treasuries Recap
The 10-year U.S Treasury yield stood at 2.802 percent higher by 0.028 bps, while 5-year yield was 0.028 bps up at 2.614 percent.
The Japanese government bonds remained tad higher Monday after the country’s current account balance for the month of February narrowly missed market estimates, albeit rising in comparison to that in January on a non-seasonally adjusted basis. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, remained tad lower at 0.03 percent, the yield on the long-term 30-year note hovered around 0.74 percent and the yield on short-term 2-year edged slightly lower at -0.14 percent.
The Australian government bonds traded narrowly mixed at the start of the week as investors preferred to stay on the sidelines ahead of Reserve Bank of Australia (RBA) Governor Philip Lowe speech, amid nervousness about global trade tensions. The yield on Australia’s benchmark 10-year note, which moves inversely to its price, traded nearly flat at 2.670 percent, the yield on the long-term 30-year note remained steady at 3.259 percent and the yield on short-term 2-year also fell 1 basis point to 2.036 percent.
The New Zealand government bonds gained at the time of closing as investors remained muted in a silent trading week amid a host of two-tier economic data, scheduled to be released through this week. The yield on New Zealand’s benchmark 10-year Treasury note, which moves inversely to its price, fell 1 basis point to 2.81 percent, the yield on the long-term 20-year note also slid 1 basis point to 3.41 percent and the yield on short-term 2-year closed 2 basis points lower at 1.92 percent.
