Market Roundup
- China April NBS manufacturing PMI, 50.1, 50.5 forecast, 50.5 previous.
- China April NBS Non – manufacturing PMI, 54.3, 54.8 previous.
- China April Caixin manufacturing PMI Final, 50.2, 51.0 forecast, 50.8 previous.
- China sets deadline of end-September for 2019 local govt bond sales.
- UK consumers unfazed by Brexit storm, firms more upbeat – Surveys.
- Spain's Sanchez weighs options after election win, outlook murky.
- Mexican Senate passes labour bill, key to approving new NAFTA.
- NBNZ April Business Outlook, -37.5, -38.0 previous.
- NBNZ Own Activity, 7.1, 6.3 previous.
- Australia March Private Sector Credit, 0.3%, 0.3% previous.
- Australia March Housing Credit, 0.2%, 0.3% previous.
Economic Data Ahead
- (0355 ET/0755 GMT) Germany April Unemployment change SA, -5k forecast, -7k previous.
- (0355 ET/0755 GMT) Germany April Unemployment Rate SA, 4.9% forecast, 4.9% previous.
- (0500 ET/0900 GMT) EU Q1 GDP Flash Prelim Q/Q, 0.3% forecast, 0.2% previous.
- (0500 ET/0900 GMT) EU Q1 GDP Flash Prelim Y/Y, 1.1% forecast, 1.1% previous.
- (0500 ET/0900 GMT) EU March Unemployment Rate, 7.8% forecast, 7.8% previous.
- (0800 ET/1200 GMT) Germany April CPI Prelim M/M, 0.5% forecast, 0.45 previous.
- (0800 ET/1200 GMT) Germany April CPI Prelim Y/Y, 1.6% forecast, 1.3% previous.
- (0800 ET/1200 GMT) Germany April HICP Prelim M/M, 0.6% forecast, 0.5% previous.
- (0800 ET/1200 GMT) Germany April HICP Prelim Y/Y, 1.7% forecast, 1.4% previous.
Key Events Ahead
- (0340 ET/0740 GMT) BOE Deputy Governor Dave Ramsden keynote speech at Innovate Finance Global Summit 2019 in London.
- (1100 ET/1500 GMT) Bank of Canada Governor Stephen Poloz and Senior Deputy Governor Carolyn Wilkins will testify to the House of Commons Finance Committee in Ottawa.
- N/A U.S. Federal Reserve's Federal Open Market Committee to commence its two-day meeting on interest rates (to May 1).
FX Recap
USD: Against a basket of currencies, the dollar was flat at 97.859 and still not far from last week's near two-year peak of 98.330.
EUR/USD: The euro was little moved at $0.1180 as investors await figures for economic growth in the common currency bloc due later in the session. It made intraday high at $1.1193 and low at $1.1179 mark. A consistent close below $1.1185 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 marginally higher around 111.60 mark as Japanese banks will be closed in observance of Showa Day. The safe-haven yen got a lift, with the Aussie losing 0.4 percent to 78.59, while holding steady on the U.S. dollar at 111.59 yen. It made intraday high at 111.69 and low at 111.48 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 111.53 will drag the parity down towards key support around 110.80, 109.70, 107.50 and 104.20 marks respectively.
GBP/USD: The sterling rose to a three-day high against the dollar on Monday but was little changed against other major currencies before a central bank policy meeting this week. Markets do not expect the Bank of England to raise interest rates until early 2020. Against the dollar, the pound gained as much as 0.7 percent to $1.2945 but was steady against the euro and the Japanese yen. Pair made intraday high at $1.2944 and low at $1.2923 mark. A sustained close below $1.2897 requires for dragging the parity down towards key support around $1.2772 mark. On the other side, key resistances are seen at $1.2962, $1.3020, $1.3187, $1.3215, $1.3362 and $1.3490 levels respectively.
AUD/USD: The Australian dollar led risk assets lower in Asia on Tuesday after a survey on Chinese manufacturing missed forecasts in a blow to hopes for a rebound in global growth. The currency quickly eased to $0.7040 after the PMI release, from $0.7064. The pair made intraday high at $0.7069 and low at $0.7033 levels. A consistent close below $0.7015 requires for downside rally.
NZD/USD: The kiwi trades almost flat against U.S. dollar and currently trading around $0.6662 mark. A sustained close above $0.6690 requires for the upside rally. Alternatively, key support was seen at $0.6580 mark.
Equities Recap
Japanese banks will be closed in observance of Showa Day.
Australia’s S&P/ASX200 was trading 0.54 pct lower at 6,324.55 points.
Shanghai composite index to open down 0.3 pct at 3,052.62 points and China's CSI300 index to open down 0.3 pct at 3,887.18 points.
Hong Kong's hang seng index was trading 0.54 percent lower at 29,731.22 points.
South Korea’s Kospi was trading 0.43 percent lower at 2,206.58 points.
Taiwan stock was trading 0.01 percent lower at 10,938.61 points.
India’s NSE Nifty was trading around 0.75 percent lower at 11,664.28 points while BSE Sensex was trading 0.75 points lower at 38,778.87 points.
Commodities Recap
Oil prices dipped on Tuesday on expectations rising output from the United States and producer club OPEC would offset most of the shortfall expected from U.S. sanctions on Iran, but analysts said markets remained tight. A stutter in China's factory and servicing industries in April also weighed on crude prices, traders said, as it suggested Asia's biggest economy is still struggling to regain traction. Brent crude futures were at $71.75 per barrel at 0131 GMT, down 29 cents, or 0.4 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures were at $63.35 per barrel, down 15 cents, or 0.2 percent from their previous settlement.
Gold edged up on Tuesday as Asian shares fell ahead of the release of a raft of economic data and the U.S. Federal Reserve's two-day meeting which will decide the trajectory of interest rates. Spot gold was up 0.2 percent at $1,281.95 per ounce at 0123 GMT. U.S. gold futures were up 0.2 percent at $1,283.90 an ounce.
Treasuries Recap
Australian government short-term bonds gained during Asian session Tuesday as factory activity in China expanded for a second straight month in April but at a much slower pace.
The yield on Australia’s benchmark 10-year note, which moves inversely to its price, rose about 1/2 basis point to 1.803 percent, the yield on the long-term 30-year bond jumped 2 basis points to 2.461 percent and the yield on short-term 2-year fell 1 basis point to 1.343 percent by 04:05GMT.
