Market Roundup
- Japan tells U.S. can't link monetary policy to trade - Finance minister Aso.
- Japan's March factory output decline flags risk of GDP contraction.
- U.S. adds another China e-commerce site to 'notorious' IP blacklist.
- China's Xi says Belt and Road must be green, sustainable.
- North Korean leader says peace on Korean peninsula depends on US attitude – KCNA.
- Japan March Retail Sales YY, 1.0%, 0.8% forecast, 0.4% previous, 0.6% revised.
- Australia Q1 PPI YY, 1.9%, 2.0% previous.
- New Zealand Trade Balance, 922.0 mln, 12.0 mln previous, -68.0 mln revised.
- Foreign CB US debt holdings -$15.177 bln to $3.452 tln Apr 24 week.
- Treasuries -$15.766 bln to $3.046 tln, agencies +$51 mln to $333.883 bln.
- U.S. muni bond funds post $1.6 bln in inflows - Lipper.
Economic Data Ahead
- (0245 ET/0645 GMT) France April Consumer Confidence, 97 forecast, 96 previous.
Key Events Ahead
- (0400 ET/0800 GMT) ECB's Olli Rehn will speak about the economic outlook for Finland and Europe as well as central bank monetary policy at the Bank of Finland's seminar in Helsinki.
FX Recap
USD: The dollar index versus a basket of six major currencies stood at 98.123 after advancing to 98.322 on Thursday, it is highest since May 2017.
EUR/USD: The euro was a touch higher at $1.1138 but within reach of $1.1117, its lowest level since June 2017 plumbed on Thursday. The single currency has shed nearly 1 percent against the dollar this week, weighed by worries about the health of the euro zone economy. It made intraday high at $1.1141 and low at $1.1124 mark. A consistent close below $1.1130 will drag the parity down towards key supports around $1.1080 and $1.0852 levels respectively. Alternatively, reversal from key support will drag the parity higher towards key resistances around $1.1390, $1.1472, $1.1550, $1.1620 and $1.1820 marks respectively.
USD/JPY: The Japanese yen trades almost flat after industrial production, retail sales data. It made intraday high at 111.78 and low at 111.44 levels. A sustained close above 112.17 is required to take the parity higher towards key resistances around 112.60 and 113.98 marks respectively. Alternatively, a daily close below 111.58 will drag the parity down towards key support around 110.80, 109.70, 107.50 and 104.20 marks respectively.
GBP/USD: The sterling edged 0.1 percent higher to $1.2903, its weakest since mid-February. Against the euro, the pound dropped 0.1 percent to 86.36 pence. Pair made intraday high at $1.2906 and low at $1.2885 mark. A sustained close below $1.2992 requires for dragging the parity down towards key support around $1.2772 mark. On the other side, key resistances are seen at $1.3020, $1.3187, $1.3215, $1.3362 and $1.3490 levels respectively.
AUD/USD: The Australian dollar nudged up 0.15 percent to $0.7027 after ending Thursday little changed. The Aussie has lost nearly 2 percent this week, during which it sank to a near four-month trough as soft domestic inflation data boosted the prospect of a rate cut by the Reserve Bank of Australia. The pair made intraday high at $0.7031 and low at $0.7007 levels. A consistent close below $0.7015 requires for downside rally.
NZD/USD: The kiwi trades marginally higher against major peers after strong trade balance data. A sustained close above $0.6656 requires for the upside rally. Alternatively, key support was seen at $0.6580 mark.
Equities Recap
Tokyo's Nikkei was trading 0.74 pct lower at 22,143.85 points.
Australia’s S&P/ASX200 was trading 0.11 pct lower at 6,375.55 points.
Shanghai composite index to open down 0.5 pct at 3,108.16 points and China's CSI300 index to open down 0.5 pct at 3,921.89 points.
Hong Kong's hang seng index was trading 0.07 percent higher at 29,576.22 points.
South Korea’s Kospi was trading 0.57 percent lower at 2,178.58 points.
Taiwan stock was trading 1.07 percent lower at 10,922.61 points.
India’s NSE Nifty was trading around 0.22 percent higher at 11,668.28 points while BSE Sensex was trading 0.13 points higher at 38,776.87 points.
Commodities Recap
Oil prices dipped on Friday on hopes that producer club OPEC will soon raise output to make up for a decline in exports from Iran following a tightening of sanctions on Tehran by the United States. Despite this, oil markets remain tight amid supply disruptions and rising geopolitical concerns, especially over the tensions between the United States and Iran, putting prices on course for the longest run of weekly gains in years. Brent crude futures were at $74.17 per barrel at 0430 GMT, down 18 cents, or 0.2 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures were at $64.92 per barrel, down 29 cents, or 0.4 percent.
Gold climbed on Friday, as signs of weak global growth rekindled investor interest in the safe-haven metal, keeping it on track for its first weekly gain in five, while a strong dollar ahead of the U.S. GDP data capped gains for the bullion. Spot gold was up 0.1 percent at $1,278.62 per ounce, as of 0334 GMT. The metal rose 0.4 percent so far this week, and is poised for its first gain since the week ended March 22. U.S. gold futures edged up 0.2 percent to $1,280.60 an ounce.
Treasuries Recap
Australian government bonds slightly gained during Asian trading session Friday following disappointment in the country’s producer price inflation (PPI) data for the first quarter of this year, which added to hopes of a rate cut by the Reserve Bank of Australia (RBA) over the coming months.
The yield on Australia’s benchmark 10-year note, which moves inversely to its price, edged tad lower to 1.793 percent, the yield on the long-term 30-year bond slipped 1 basis point to 2.431 percent and the yield on short-term 2-year hovered around 1.330 percent by 04:50GMT.
