Market Roundup
- Oil rebounds as producers trim output
- Australian goods exports jump 29% in March
Economic Data Ahead
- (0400 ET/0800 GMT) EZ Markit Manufacturing PMI(Apr) PREL
- (0400 ET/0800 GMT) EZ Markit Services PMI(Apr) PREL
- (0400 ET/0800 GMT) EZ Markit PMI Composite(Apr) PREL
- (0430 ET/0830 GMT) UK Markit Manufacturing PMI(Apr) PREL
- (0430 ET/0830 GMT) UK Markit Services PMI(Apr) PREL
Key Events Ahead
- No Significant Events Scheduled
FX Beat
DXY: The dollar index advanced to a 2-week peak, boosted by U.S. stimulus measures to ease the economic blow from the coronavirus outbreak. The greenback against a basket of currencies traded 0.1 percent up at 100.48, having touched a high of 100.50 earlier, its highest since Apr. 7.
EUR/USD: The euro rose after tumbling to a 2-week low in the prior session on data that showed Eurozone consumer confidence fell by 11.1 points in April from the March number. Investors now await a meeting of European Union officials on the bloc’s response to the economic turmoil caused by the global coronavirus pandemic. The European currency traded 0.1 percent up at 1.0804, having touched a low of 1.0803 on Wednesday, its lowest since April 7. Investors’ attention will remain on a series of economic data from the Eurozone economies and EZ Markit PMI's, ahead of the U.S. unemployment benefit claims, Markit PMI's, new home sales and Kansas Fed manufacturing activity index. Immediate resistance is located at 1.0849 (5-DMA), a break above targets 1.0890 (10-DMA). On the downside, support is seen at 1.0791, a break below could drag it below 1.0768.
USD/JPY: The dollar surged as risk sentiment improved following a rebound in crude prices from historic lows and the promise of more U.S. government aid to cushion the coronavirus-ravaged economy. The U.S. House of Representatives expects to pass a nearly $500 billion coronavirus relief bill on Thursday but will put off any decision on changing its voting rules during the pandemic. The major was trading 0.1 percent up at 107.82, having hit a low of 106.92 last week, its lowest since Apr. 1. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. unemployment benefit claims, Markit PMI's, new home sales and Kansas Fed manufacturing activity index. Immediate resistance is located at 108.01, a break above targets 108.18 (21-DMA). On the downside, support is seen at 107.53, a break below could take it near at 107.28.
GBP/USD: Sterling rose, extending prior session gains, supported by Wednesday's report showing Britain’s inflation rate dropped in March, but was in line with expectations, as oil prices fell and the coronavirus crisis escalated. The major traded 0.2 percent up at 1.2360, having hit a low of 1.2247 on Tuesday, it’s lowest since April 9. Investors’ attention will remain on the geopolitical developments ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.2397, a break above could take it near 1.2446. On the downside, support is seen at 1.2305, a break below targets 1.2274. Against the euro, the pound was trading 0.2 percent up at 87.54 pence, having hit a low of 88.63 on Tuesday, it’s lowest since April 1.
AUD/USD: The Australian dollar rallied above the 0.6300 handle on data showing domestic goods exports rose sharply in March as the country shipped more iron ore to China and more gold to Hong Kong and the UK. Australia's exports of goods jumped 29 percent in original terms in March to A$36.1 billion, following declines in January and February, while imports of goods rose by 10 percent to A$23.8 billion. The Aussie trades 0.4 percent up at 0.6345, having hit a low of 0.6253 on Tuesday, it’s lowest since Apr. 9. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate resistance is located at 0.6385, a break above could take it near 0.6397. On the downside, support is seen at 0.6262, a break below targets 0.6235.
Equities Recap
Asian shares rebounded, supported by better-than-expected U.S. corporate earnings and a bounce back in crude prices from historic lows.
MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.8 percent.
Tokyo's Nikkei rose 1.5 percent to 19,429.44 points, Australia's S&P/ASX 200 index plunged 0.1 percent to 5,217.10 points and South Korea's KOSPI rallied 0.9 percent to 1,914.73 points.
Shanghai composite index eased 0.2 percent to 2,838.50 points, while CSI 300 index traded 0.3 percent down at 3,829.75 points.
Hong Kong’s Hang Seng traded 0.5 percent higher at 24,013.34 points. Taiwan shares added 0.6 percent to 10,366.51 points.
Commodities Recap
Crude oil prices rallied, extending prior session gains amid signs that producers are cutting production to cope with a collapse in demand for fuel as the coronavirus outbreak hurts the world’s economies. International benchmark Brent crude was trading 6.9 percent higher at $22.19 per barrel by 0548 GMT, having hit a low of $15.91 on Wednesday, its lowest since June 1999. U.S. West Texas Intermediate was trading 6.7 percent up at $15.29 a barrel, after recording a historic decline on Monday.
Gold prices surged, supported by U.S. stimulus measures to ease the economic blow from the coronavirus outbreak. Spot gold rose 0.1 percent to $1,716.75 per ounce by 0552 GMT, having touched a low of $1,661.41 on Tuesday, its lowest since Apr. 9. U.S. gold futures gained 0.1 percent to $1,733.40 per ounce.
Treasuries Recap
On Wednesday, the benchmark 10-year yield was up 4.8 basis points at 0.619 percent, while the two-year U.S. Treasury yield was up less than a basis point at 0.2112 percent.
