Market Roundup
- Trade dispute escalates as Trump threatens $100 bln more in China tariffs.
- China says will take new measures if US sticks to protectionist trade stance.
- U.S. willing to talk trade with China, no session set yet.
- Trump taking 'serious look' at policy options on Amazon.
- NAFTA nations 'moving forward in significant way' - Canada's Trudeau.
- Japan Feb household spending -1.5% m/m, -0.9% y/y, -0.6% and +0.3% eyed.
- Japan Feb total cash earnings +1.3% y/y, real wages -0.5%, overtime +1.0%.
- Fall in Japan real wages third consecutive fall, bodes bad for consumption.
- Foreign CB US debt holdings +$6,386 bln to $3.437 tln Apr 4 week.
- Treasuries $6,796 bln to $3.084 tln, agencies +$1,499 mln to $274.105 bln.
- U.S. investors retreat from stock funds for 3rd week – Lipper.
- NY Fed FX swaps with foreign CBs $5.011 bln latest week, all with ECB.
Economic Data Ahead
- (0300 ET/0700 GMT) Hungary Industrial output.
- (0400 ET/0800 GMT) Czech Forex reserves.
- (0700 ET/1100 GMT) Chile inflation, core inflation.
- (0730 ET/1130 GMT) India forex reserves.
- (0800 ET/1200 GMT) Poland forex reserves.
Key Events Ahead
- (0245 ET/0645 GMT) European Central Bank executive board member Benoit Coeure speaks at a conference about "The Outlook for the Economy and Finance". - Cernobbio, Italy.
- (0810 ET/1210 GMT) Governor of Norges Bank Oystein Olsen will give speech – London.
- (1115 ET/1515 GMT) Bank of England Governor, Mark Carney: Speech at the International Climate Risk Conference for Supervisors – Amsterdam.
- (1330 ET/1730 GMT) Federal Reserve Chairman Jerome Powell speaks on the economic outlook before the Economic Club of Chicago – Chicago.
- (1515 ET/1915 GMT) Federal Reserve Chairman Jerome Powell tours the HUB facility – Chicago.
- (1600 ET/2000 GMT) Federal Reserve Bank of San Francisco President John Williams speaks on the outlook for the national economy - Santa Rosa, Californias.
FX Recap
USD: The dollar index, which measures the greenback against a basket of six other major currencies, was little changed at 90.47.
EUR/USD: The euro was trading marginally lower at $1.2230 ahead of U.S. NFP job data. Intraday bias remains neutral till the time pair holds key support at 1.2193 mark. A consistent close below $1.2193 will drag the parity down towards key supports around $1.1936 levels. Alternatively, reversal from key support will take the parity higher towards key resistances around $1.2345, $1.2482 and $1.2555 marks respectively.
USD/JPY: The yen trades almost flat against U.S. dollar and hovers around fresh 2-month high at 107.49 levels. It made intraday high at 107.44 and low at 106.99 levels. A sustained close above 107.37 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 107.37 will drag the parity down towards key supports around 106.71, 105.32, 104.90, 103.20 and 101.45 marks respectively. In early Asia, the dollar fell against the yen after U.S. President Donald Trump said he had instructed U.S. trade officials to consider $100 billion in additional tariffs on China.
GBP/USD: The pound fell on Thursday and was set for its biggest daily drop in six weeks at $1.3965 levels. Thanks to a general dollar rebound as trade war concerns eased and after a survey showed British services growing at their slowest since the Brexit referendum vote. The pair was currently trading around $1.3989 marks. On the top side key resistance was seen at $1.4097 and support was seen at $1.3904 mark. Against the euro, it weakened 0.2 percent to 87.40 pence.
AUD/USD: The Aussie dollar fell as much as 30 ticks to $0.7658 immediately after the U.S. – China trade news, but found solid support around $0.7650 as it has done for more than a week now. Trump said late Thursday he had instructed U.S. trade officials to consider $100 billion in additional tariffs on China, fuelling an already heated trade dispute between the world's two biggest economies. Intraday bias remains slightly bearish till the time pair holds key resistance at $0.7722 levels. Key support levels are seen at $0.7650 and $0.7502 levels.
NZD/USD: The kiwi falls against U.S. dollar on Friday and currently trading around $0.7257 marks. Pair made intraday high at $0.7277 and low at $0.7252 levels. A Sustained close above $0.7273 requires for upside rally. Alternatively, reversal from key resistance will take the parity down towards key supports around $0.7182 mark.
Equities Recap
Japan’s Nikkei was trading around 0.33 pct higher at 21,716.55 points.
Australia’s S&P/ASX200 was trading 0.13 pct higher at 5,796.30 points.
Hong Kong’s Hang seng was trading 1.23 pct higher at 29,883.50 points.
South Korea’s Kospi was trading 0.54 percent lower at 2,424.63 points.
India’s NSE was trading around 0.02 pct higher at 10,325.55 points and 0.04 pct higher at 33,603.55 points.
Commodities Recap
Oil prices fell on Friday after U.S. President Donald Trump's threat of new tariffs on China reignited fears of a trade war between the world's two biggest economies. President Trump said on Thursday he had ordered U.S. trade officials to consider tariffs on $100 billion more of imports from China, escalating tensions with Beijing. Brent crude for June delivery was down 32 cents, or 0.5 percent, at $68.01 per barrel at 0410 GMT. U.S. West Texas Intermediate crude for May delivery was down 35 cents, or 0.6 percent, at 63.19 a barrel.
Gold prices rose on Friday as investors fled to safe-haven assets after U.S. President Donald Trump re-ignited trade war fears by proposing $100 billion in new tariffs on China. Spot gold rose 0.3 percent to $1,330.18 per ounce as of 0320 GMT, and the U.S. gold futures rose 0.4 percent to $1,333.50 an ounce. The yellow metal was up 0.5 percent so far this week. Gold on Thursday dropped to a one-week low of $1,322.40 an ounce after the United States and China signalled a willingness to negotiate their trade dispute.
Treasuries Recap
New Zealand government bonds eased, sending yields 1 basis point higher at the long end of the curve.
Australian government bond futures edged up a tick as sovereign bonds benefited from the latest trade rumblings. The three-year bond contract added 1 tick to 97.830, while the 10-year contract rose half a tick to 97.3250.
