Market Roundup
- Australian retail sales surge record 8.2% in March
- U.S. crude collapses for second day
Economic Data Ahead
- (0400 ET/0800 GMT) Italy Industrial Sales s.a. (MoM)(Feb)
- (0400 ET/0800 GMT) Italy Industrial Orders s.a (MoM)(Feb)
- (0400 ET/0800 GMT) Italy Industrial Sales n.s.a. (YoY)(Feb)
- (0400 ET/0800 GMT) Italy Industrial Orders n.s.a (YoY)(Feb)
Key Events Ahead
- No Significant Events Scheduled
FX Beat
DXY: The dollar index steadied after the U.S. Senate on Tuesday unanimously approved $484 billion in fresh relief for the U.S. economy and hospitals hammered by the coronavirus pandemic. The greenback against a basket of currencies traded flat at 100.22, having touched a high of 100.48 on Tuesday, its highest since Apr. 7.
EUR/USD: The euro nudged up after the heads of the International Monetary Fund, European Stability Mechanism and other regional financing arrangements agreed to work together to mitigate the economic and financial impacts of the pandemic. The European currency traded 0.1 percent up at 1.0862, having touched a low of 1.0812 on Friday, its lowest since April 7. Investors’ attention will remain on a series of economic data from the Eurozone economies and EZ preliminary consumer confidence, ahead of the U.S. housing price index. Immediate resistance is located at 1.0893 (10-DMA), a break above targets 1.0911 (21-DMA). On the downside, support is seen at 1.0835, a break below could drag it below 1.0812.
USD/JPY: The dollar declined, halting a 2-day rally, after data released yesterday showed U.S. home sales dropped by the most in nearly 4-1/2 years in March as measures to control the spread of the virus brought buyer traffic to a virtual standstill. The major was trading 0.2 percent down at 107.54, 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. housing price index. Immediate resistance is located at 107.88 (10-DMA), a break above targets 108.10. On the downside, support is seen at 107.41, a break below could take it near at 106.92.
GBP/USD: Sterling steadied after tumbling to a 2-week low in the prior session after data showed UK consumer price index was 1.5 percent higher compared with March 2019, following a 1.7 pecent rise in February. Separate data showed factory output prices rose unexpectedly in March, rising 0.3 percent on the year, against expectations for a 0.1 percent drop. The major traded 0.2 percent up at 1.2314, 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 1.2374, a break above could take it near 1.2396. On the downside, support is seen at 1.2245, a break below targets 1.2210. Against the euro, the pound was trading 0.1 percent up at 88.22 pence, having hit a low of 88.63 on Tuesday, it’s lowest since April 1.
AUD/USD: The Australian dollar rebounded from a near 2-week low after data showed domestic retail sales surged by the most on record in March as a lockdown for the coronavirus spurred panic buying of food and other staples. Australia's preliminary estimate of retail sales jumped 8.2 percent seasonally adjusted in March, from 0.5 percent in February. The Aussie trades 0.7 percent up at 0.6329, 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 0.6367, 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 slumped as Brent oil futures plunged for a second day to a low last seen almost two decades ago, fueled by a rising world crude glut.
MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.8 percent.
Tokyo's Nikkei eased 0.7 percent to 19,137.95 points, Australia's S&P/ASX 200 index plunged 0.05 percent to 5,221.20 points and South Korea's KOSPI rallied 0.9 percent to 1,896.16 points.
Shanghai composite index rose 0.5 percent to 2,841.79 points, while CSI 300 index traded 0.7 percent up at 3,835.90 points.
Hong Kong’s Hang Seng traded 0.5 percent higher at 23,918.51 points. Taiwan shares added 0.2 percent to 10,307.74 points.
Commodities Recap
Crude oil prices plunged to new multi-year lows as the coronavirus pandemic obliterated demand for fuel. International benchmark Brent crude was trading 15.36 percent lower at $16.62 per barrel by 0535 GMT, having hit a low of $16.01 earlier, its lowest since June 1999. U.S. West Texas Intermediate was trading 13.97 percent down at $11.24 a barrel, after recording a historic decline on Monday.
Gold prices eased, hovering towards a near 2-week trough hit in the prior session as the greenback rallied against a basket of currencies. Spot gold was trading 0.2 percent down at $1,684.36 per ounce by 0545 GMT, having touched a low of $1,661.41 on Tuesday, its lowest since Apr. 9. U.S. gold futures were up 0.9 percent at $1,703.60.
Treasuries Recap
The yields on benchmark 10-year Japanese government bonds fell to a two-week low, with the 10-year JGB yield falling 2.5 basis points to minus 0.010 percent, the lowest since April 6. Futures contracts for 10-year JGBs rose 0.3 point to 152.4. The 20-year JGB yield fell 2.5 basis points to 0.315 percent. The 30-year JGB yield fell 3.5 basis points to 0.435 percent. n the middle of the yield curve, the five-year yield fell 2.5 basis points to minus 0.125 percent. At the short end, the two-year JGB yield fell 1 basis point to minus 0.145 percent.
