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Asia Roundup: Aussie eases as consumer confidence deteriorates, greenback declines on soft U.S. inflation figures, Asian shares plunge- Wednesday, March 13th, 2019

Market Roundup

  • Australia slowdown, housing crash hit consumer confidence in March -survey
     
  • Britain in Brexit chaos: parliament crushes May's EU deal again
     
  • Deal or no deal, U.S.-China trade talks may finish in weeks -Lighthizer
     
  • Japan Feb Corp Goods Price YY, 0.8%, 0.7% f'cast, 0.6% prev
     
  • Japan Jan Machinery Orders YY, -2.9%, -2.3% f'cast, 0.9% prev
     
  • Japan Jan Machinery Orders MM, -5.4%, -1.7% f'cast, -0.1% prev
     

Economic Data Ahead

  • (0600 ET/1000 GMT) EZ Jan Industrial Production YY, -2.1% f'cast, -4.2% prev
     
  • (0600 ET/1000 GMT) EZ Jan Industrial Production MM, 1.0% f'cast, -0.9% prev
     

Key Events Ahead

  • N/A British Finance Minister Philip Hammond delivers his spring statement
     
  • (0430 ET/0830 GMT) ECB's Yves Mersch chairs panel at FSI 20th anniversary conference in Basel, Switzerland
     
  • (0445 ET/0845 GMT) ECB supervisor Ignazio Angeloni speaks at an event in Rome
     
  • (1300 ET/1700 GMT) ECB's Benoit Coeure delivers a speech at Universita Bocconi in Milan
     

FX Beat

DXY: The dollar index edged lower as U.S. annual consumer price inflation slowed to its lowest since September 2016 at 1.5 percent. The greenback against a basket of currencies traded 0.05 percent down at 96.96, having touched a high of 97.71 on Thursday, its highest since December. FxWirePro's Hourly Dollar Strength Index stood at -56.08 (Bearish) by 0500 GMT.

EUR/USD: The euro declined, after rising to three straight sessions, after sources stated that European Central Bank policymakers want to reduce banks' reliance on central bank cash and will tailor a fresh loan facility to curb appetite. The European currency traded 0.05 percent down at 1.1283, having touched a high of 1.1304 on Tuesday, its highest since Mar. 7. FxWirePro's Hourly Euro Strength Index stood at 89.07 (Slightly Bullish) by 0500 GMT. Investors’ attention will remain on ECB Mersch's speech and industrial production, ahead of the U.S. producer price index, durable goods and construction spending. Immediate resistance is located at 1.1327 (61.8% retracement of 1.1176 and 1.1496), a break above targets 1.1367 (78.6% retracement). On the downside, support is seen at 1.1252 (5-DMA), a break below could drag it till 1.1176 (March 7 Low).

USD/JPY: The dollar eased against the Japanese yen after data released yesterday showed U.S. consumer prices rose at a slower-than-expected pace, dragging Treasury yields to two-month lows. The major was trading 0.05 percent down at 111.27, having hit a low of 110.74 on Friday, its lowest since February 28. FxWirePro's Hourly Yen Strength Index stood at -111.28 (Highly Bearish) by 0500 GMT. Investors’ will continue to track the broad-based market sentiment, ahead of U.S. producer price index, durable goods and construction spending. Immediate resistance is located at 111.65 (Mar. 8 High), a break above targets 112.13 (Mar. 5 High). On the downside, support is seen at 110.66 (Feb.28 Low), a break below could take it lower at 110.35 (Feb.27 Low).

GBP/USD: Sterling rose, reversing some of its previous session losses, as the parliament will vote later in the day on whether to leave the EU with no deal, and if that fails, a further vote on Thursday will decide whether to extend the Brexit deadline. On Tuesday, the British Parliament rejected Prime Minister Theresa May's deal to exit the European Union for a second time. The major traded 0.2 percent up at 1.3092, having hit a low of 1.2960 on Monday; it’s lowest since Feb.19. FxWirePro's Hourly Sterling Strength Index stood at -25.29 (Neutral) 0500 GMT. Immediate resistance is located at 1.3170 (Mar. 11 High), a break above could take it near 1.3254 (Mar. 4 High). On the downside, support is seen at 1.3026 (Feb. 21 Low), a break below targets 1.2989 (Mar. 11 Low). Against the euro, the pound was trading 0.1 percent down at 86.18 pence, having hit a high of 84.74 earlier, it’s highest since May 2017.

AUD/USD: The Australian dollar slumped after rising to a near 1-week peak in the prior session after a gauge of domestic consumer confidence slumped in March to its lowest level in over a year as disappointing economic news dented investor sentiment. The Aussie trades 0.3 percent down at 0.7059, having hit a low of 0.7003 on Friday, it’s lowest since Jan. 4. FxWirePro's Hourly Aussie Strength Index stood at -0.45 (Neutral) by 0500 GMT. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate support is seen at 0.6993 (Jan.4 Low), a break below targets 0.6965. On the upside, resistance is located at 0.7092 (Mar. 6 High), a break above could take it near 0.7150 (Feb. 22 High).

Equities Recap

Asian shares plunged, as risk-off sentiment gripped investors after British lawmakers voted against May's amended Brexit deal by 391 to 242.

MSCI's broadest index of Asia-Pacific shares outside Japan traded dropped 0.4 percent

Tokyo's Nikkei fell 1.02 percent to 21,283.19 points, Australia's S&P/ASX 200 index eased 0.2 percent to 6,161.20 points and South Korea's KOSPI tumbled 0.4 percent to 2,149.88 points.

Shanghai composite index declined 0.6 percent to 3,042.24 points, while CSI300 index traded 0.4 percent down at 3,739.52 points.

Hong Kong’s Hang Seng traded 0.5 percent lower at 28,787.60 points. Taiwan shares added 0.3 percent to 10,373.32 points

Commodities Recap

Crude oil prices surged, lifted by ongoing supply cuts from producer cartel OPEC and U.S. sanctions against Iran and Venezuela. International benchmark Brent crude was trading 0.1 percent up at $66.86 per barrel by 0437 GMT, having hit a high of $67.38 on Tuesday, its highest since Feb. 25. U.S. West Texas Intermediate was trading 0.2 percent higher at $57.16 a barrel, after rising as high as $57.53 on Tuesday, its highest since the March 1.

Gold price rose to its highest level in nearly two weeks, buoyed by safe-haven demand from Brexit uncertainty and a fall in greenback following softer U.S. data. Spot gold was trading 0.3 percent up at $1,305.08 per ounce by 0453 GMT, having touched a high of $1,305.70, its highest since March 1. U.S. gold futures were up 0.4 percent at $1,303.80 an ounce.

Treasuries Recap

The Japanese government bond prices rose across the board. The benchmark 10-year JGB yield fell 1 basis point to minus 0.045 percent. The 20-year yield declined 1.5 basis points to 0.390 percent, while the 30-year yield dropped 2 basis points to 0.570 percent, its lowest since Feb. 22.

The Australian government bond futures eased slightly, with the three-year bond contract off 1.5 ticks at 98.375. The 10-year contract dipped 1 tick to 97.9575.

The yields on New Zealand government bonds were up around 1 basis point.

The Canadian government bond prices were higher across a flatter yield curve. The two-year rose 1 Canadian cent to yield 1.652 percent and the 10-year was up 14 Canadian cents to yield 1.738 percent. The 10-year yield touched its lowest since June 2017 at 1.728 percent.

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April 19 12:30 UTC Released

USHouse Starts MM: Change

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-0.3 %

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-8.7 %

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1.23 Mln

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1.162 Mln

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