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Asia Roundup: Aussie trades marginally lower, Asian markets in green, gold slips below $1,320 mark - Monday, April 30, 2018

Market Roundup

  • China April NBS Manufacturing PMI, 51.4, forecast 51.3, last 51.5
    .
  • China April NBS Non-manufacturing PMI, 54.80, last 54.60.
     
  • New Zealand April NBNZ Business Outlook, -23.4%, last -20.0%.
     
  • New Zealand April NBNZ Own Activity, 17.8%, last 21.8%.
     
  • New Zealand March Housing Credit, 0.5%, last 0.5%.
     
  • U.S. warns North Korea must take 'irreversible' steps to denuclearize.
     
  • British interior minister Rudd resigns after immigration scandal.
     
  • London elections set to leave British PM May down, but not out.
     
  • Britain, France and Germany agree support for Iran nuclear deal.
     
  • Bitcoin frenzy settles down as big players muscle into market.
     
  • Australian banks seen vulnerable if housing turns down sharply – Fitch.

Economic Data Ahead

  • (0400 ET/0800 GMT) Spain Feb Current Account Balance, last -0.45 bln.
     
  • (0400 ET/0800 GMT) Euro Zone March Money-M3 Annual Growth forecast 4.1%, last 4.2%.
     
  • (0500 ET/0900 GMT) Italy April Consumer Price Prelim Y/Y, forecast 0.7%, last 0.8%.
     
  • (0500 ET/0900 GMT) Italy April CPI (EU Norm) Prelim Y/Y, forecast 0.7%, last 0.9%.
     
  • (0800 ET/1200 GMT) Germany April CPI Prelim M/M, forecast 0.0%, last 0.4%.
     
  • (0800 ET/1200 GMT) Germany April CPI Prelim Y/Y, forecast 1.6%, last 1.6%.
     
  • (0800 ET/1200 GMT) Germany April HICP Prelim M/M, forecast 0.0%, last 0.4%.
     
  • (0800 ET/1200 GMT) Germany April HICP Prelim Y/Y, forecast 1.5%, last 1.5%.

Key Events Ahead

  • (0400 ET/0800 GMT) ECB releases monthly data on lending and money supply.

FX Recap

USD: The dollar's index against a basket of six major currencies stood at 91.561, steady on the day but down from Friday's high of 91.986, its strongest level since Jan. 11. The dollar index had risen more than 1.3 percent last week for its biggest weekly gain in over two months, after the U.S. 10-year Treasury yield rose above the psychologically key 3.0 percent threshold to four-year highs.

EUR/USD: The euro held steady at $1.2125, having recovered from a 3-1/2-month low of $1.2055 set on Friday. Intraday bias remains bullish till the time pair holds key support at 1.2103 mark. A consistent close below $1.2103 will drag the parity down towards key supports around $1.2055 and $1.1936 levels respectively. Alternatively, reversal from key support will take the parity higher towards key resistances around $1.2240, $1.2345, $1.2482 and $1.2555 marks respectively.

USD/JPY: The yen trades almost flat against U.S. dollar and stabilizes above 109.00 mark. It made intraday high at 109.18 and low at 109.02 levels. A sustained close above 109.02 is required to take the parity higher towards key resistances around 110.48 and 112.96 marks. Alternatively, a daily close below 109.02 will drag the parity down towards key supports around 108.54, 106.71 and 105.32 marks respectively.

GBP/USD:  The Sterling eased 0.1 percent to $1.3785. It made intraday high at $1.3786 and low at $1.3768 levels. On the top side key resistance was seen at $1.4023 and support was seen at $1.3589 mark. On Friday, the British pound had set a near two-month low of $1.3748 on Friday after Britain's economy slowed far more than expected in the first quarter of 2018, slashing expectations the Bank of England will raise interest rates in May.

AUD/USD: The Aussie dollar was down 0.2 percent at $0.7565, after bouncing modestly from $0.7532 on Friday. It lost 1 percent last week and was threatening major chart support at $0.7501, a trough from last December. A break above $0.7650 would be needed to turn around the recent bearish trend. Intraday bias remains neutral till the time pair holds key resistance at $0.7583 levels. Key support levels are seen at $0.7502 levels.

NZD/USD: The kiwi dollar was also struggling at $0.7070, having hit a four-month low of $0.7040 on Friday. Support lies around $0.7000 and $0.6955, with resistance at $0.7100. A survey out of New Zealand on Monday showed business confidence declined in April and sentiment in the construction sector slumped as it struggled to keep pace with demand amid soaring costs.

Equities Recap

Japanese banks will be closed in observance of Showa Day.

Chinese banks will be closed in observance of Labor Day.

Australia's S&P/ASX 200 index was up 0.50 pct at 5,983.10 points in early trade.

Hong Kong’s Hang seng was trading 1.60 pct higher at 30,763.50 points.

South Korea’s Kospi was trading 0.70 percent higher at 2,509.63 points.

Taiwanese stock was trading around 0.77 percent higher at 10,634.75 points.

India’s NSE Nifty was trading around 0.48 percent higher at 10743.80 points while BSE Sensex was trading 0.51 points higher at 35,153.95 points.

Commodities Recap

Oil prices edged lower on Monday as a rising rig count in the United States pointed to higher production, but prices held near more than three-year highs and were on track to rise for a second consecutive month. The oil complex has been driven by supply concerns amid prospects of the United States re - imposing sanctions on Iran, while OPEC-led producers continue to withhold supplies. Brent crude futures, the international benchmark, dipped 39 cents, or 0.5 percent, to $74.25 a barrel at 0305 GMT. Prices climbed as high as $75.47 last week, levels not seen since November, 2014. U.S. West Texas Intermediate (WTI) crude futures were at $67.89 a barrel, down 21 cents, or about 0.3 percent, from their last settlement.

Gold prices were little changed on Monday as investor interest in the yellow metal dropped as the U.S. dollar steadied and there were signs of easing tensions on the Korean peninsula, reducing the safe-haven demand for gold. Spot gold fell 0.1 percent to $1,320.80 per ounce at 0428 GMT. U.S. gold futures for June delivery declined 0.1 percent to $1,322 per ounce. Gold is set for a slight monthly decline of 0.2 percent for April.

Treasuries Recap

Yields on Australian 10-year paper are already 17 basis points under the United States, levels not seen since 1998.

Bond futures firmed further on Monday with the three-year bond contract up 4.5 ticks at 97.780. The 10-year contract rose 4 ticks to 97.2000.

New Zealand government bonds also rallied, with yields down as much as 6 basis points at the long end of the curve.

The U.S. 10-year yield has since come off that peak and fell 3 basis points on Friday to 2.957 percent, down from a four-year high of 3.035 percent struck on Wednesday.

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