Market Roundup
- Australia-New Zealand, Hong Kong, UK, Europe closed for Good Friday.
- Japan Fin Min Aso – Reiterates must avoid bilateral FTA with US.
- BoJ DepGov Amamiya – Counters view BoJ tapering, can fluctuate.
- Japanese investors show strong appetite for foreign stocks – Nikkei.
- Reuters poll – Japan fund managers cut stock exposure in March.
- Japan March Tokyo core CPI +0.8% y/y, +0.9% eyed, overall CPI +1%, ex-f/e +0.5%.
- Japan Feb industrial output +4.1% m/m, +5% eyed, Mar eyed at +0.9%, Apr +5.2%.
- Japan Feb unemployment 2.5%, jobs-applicants ratio 1.58, 2.6%/1.60 eyed.
- Japan Feb housing starts -2.6% y/y, construction orders +19.2%, Y1.24trln.
- Foreign CB US debt holdings week-ended Mar 28 +$4.188 bln to $3.444 trln.
- Treasuries -$6.531 bln to $1.090 trln, agencies +$9.470 bln to $272.6 bln.
- Lipper – US fund investors pull $14.4 bln from stock market latest week.
Economic Data Ahead
- (0245 ET/0645 GMT) France Consumer Spending +2.1% m/m eyed, last -1.9%.
- (0245 ET/0645 GMT) France HICP - Prelim, +1.5% y/y eyed, last +1.3%.
Key Events Ahead
- No major key events were scheduled for the day.
FX Recap
USD: The dollar index, which measures the greenback against a basket of six other major currencies, was little changed at 90.089. The index was up nearly 0.8 percent for the week, during which it touched a one-week high of 90.178 on factors including easing of concerns about global trade and perceived progress on North Korea issues. The dollar index was down more than 2 percent for the quarter, its fifth straight quarter of declines.
EUR/USD: The euro was little changed at $1.2301, having slipped 0.4 percent this week. The common currency was up 2.5 percent for the quarter. Intraday bias remains neutral till the time pair holds key support at 1.2240 mark. Initial resistance levels are seen at $1.2482 and $1.2555 marks respectively. On the other side, key support level is seen at $1.2240 mark.
USD/JPY: The yen trades marginally higher and currently trading around 106.20 marks. It made intraday high at 106.53 and low at 106.14 levels. A sustained close above 106.84 is required to take the parity higher towards key resistances around 107.90, 108.70, 110.48 and 112.96 marks. Alternatively, a daily close below 106.41 will drag the parity down towards key supports around 105.32, 104.90, 103.20 and 101.45 marks respectively.
GBP/USD: The pound was steady at $1.4021 and in reach of $1.4011, a one-week low set the previous day. Sterling has gained 3.8 percent this quarter, its best performance mid-2015, lifted by hopes for a transition Brexit deal - which was eventually agreed earlier this month - and growing expectations that the Bank of England could soon raise interest rates. On the top side key resistance was seen at $1.4245 and support was seen at $1.3904 mark. Against the euro it has risen 1.4 percent since January, and is heading for its best quarter since 2016.
AUD/USD: The Australian dollar was up 0.1 percent at $0.7686, edging away from a three-month low of $0.7643 touched on Thursday, pressured by the U.S. dollar's broad bounce and weaker prices of commodities such as iron ore. The Aussie was down 1.7 percent for the quarter.
NZD/USD: The kiwi dollar was holed up at $0.7230, having lost 1.1 percent overnight in a sharp correction from the week's $0.7304 peak. Major chart support lies at its March trough of $0.7154. Pair made intraday high at $0.7235 and low at $0.7219 levels. A Sustained close above $0.7297 requires for upside rally. Alternatively, reversal from key resistance will take the parity down towards key supports around $0.7154 mark.
Equities Recap
Shanghai composite index to open flat at 3,161.79 points and China's CSI300 index to open flat at 3,893.75 points.
Japan’s Nikkei was trading around 0.02 pct higher at 21,160.55 points.
South Korea’s Kospi was trading 0.60 percent higher at 2,450.23 points.
Taiwanese stock was trading around 0.76 percent higher at 10,928.11 points.
Commodities Recap
Oil prices rose on Thursday as the equities markets rallied and as market participants weighed a rise in U.S. crude inventories and production against continued OPEC supply curbs. Prices for the more actively traded June Brent crude futures were up 58 cents to settle at $69.34, while the May contract expiring on Thursday was up 74 cents at $70.27. West Texas Intermediate (WTI) crude futures gained 56 cents to settle at $64.94. WTI's discount to Brent has grown to more than $5 a barrel, the biggest since January, making Brent-linked crudes less attractive to refiners. Oil has risen about 4 percent since January, on track for the longest stretch of quarterly gains since late 2010.
Gold prices slipped on Thursday as the U.S. dollar held its strong gains from the previous session, but simmering tensions over Russia and a potential trade war offered underlying support. Gold posted its biggest one-day percentage fall in nearly nine months on Wednesday after robust U.S. data lifted the dollar, which steadied at those strong levels on Thursday. USD/Spot gold dipped 0.1 percent to $1,323.19 per ounce, after hitting $1,321.21 its lowest level since March 21. U.S. gold futures for June delivery settled down $2.70, or 0.2 percent, at $1,327.30 per ounce.
Treasuries Recap
The three-year bond future dipped 2 ticks to 97.875, while the 10-year contract added 1 tick to 97.4050. New Zealand government bonds eased in price, lifting yields 3 basis points at the long end of the curve.
BOJ offers to lend Y 10.0742 trln of JGBs on spot basis through 4/2 as a secondary source of JGBs.
