Market Roundup
- PBOC moves again to boost growth, cuts RRRSundayto 18.5%.
- IMF: Global growth moderate, uneven, exchange rate-geopolitical risks, exchange rates should be allowed to respond to changing fundamentals.
- ECB Pres Draghi: Uncharted waters if Greece crisis deteriorates.
- BoJ Gov Kuroda: Markets could be surprised by higher rates if BoJ hits inflation target in '16.
- Japan EconMin Amari: Japan won't swallow US rice imports demand, TPP talks extremely difficult.
- China March house prices -6.1% y/y, largest decline on record, Feb -5.7%.
- New Zealand Q1 CPI -0.3% q/q, +0.1% y/y, -0.2% and +0.2% eyed, CPI at 15-year low.
- New Zealand March PSI 57.6, February revised 56.0, strong new orders, inventories.
Economic Data Ahead
- (0200 EDT/0600 GMT) Germany PPI mm, consensus 0.2%, previous 0.1%.
- (0500 EDT/0900 GMT) Eurozone Construction Output mm, previous 1.9%.
- (0830 EDT/1230 GMT) Chicago Fed National Activity Index, previous -0.11.
Key Events Ahead
- N/A German Buba Monthly Report.
- (1005 EDT/1405 GMT) BoC Governor Poloz Speech.
- (1130 EDT/1530 GMT) US 3-month/6-month Bill Auction.
- (1230 EDT/1630 GMT) RBA Governor Glenn Stevens Speech.
FX Recap
USD/JPY extended its move further south on Monday and is hovering around 118.80 levels. It posted a high of 119.00 and a low of 118.75 so far. On the topside, resistance is likely to be found at 119.29 (100-DMA) levels and above which it could be pushed to 119.76 (April 15 High) levels. On the flipside, support is seen at 118.50 levels and then at 118.30 (March 26 Low) levels.
AUD/USD is trying to hold above the 0.7800 mark. It currently trades at 0.7807 levels, having posted a high of 0.7825 levels so far. The pair remains supported above the 0.78 handle, following the cut of Reserve Requirement Ratio (RRR) by 1 percentage point from the PBOC effective today. To the upside, resistance is located at 0.7826 (Today's High) levels, above which it could extend its gains to 0.7848 (April 17 High)) levels. On the downside, support is located at 0.7787 (Today's Low) levels and then at 0.7755 (April 17 Low) levels.
NZD/USD bounced higher in the Asian session, breaking above the 0.7700 mark and currently trades at 0.7703 levels. The pair has resistance located at 0.7725 levels and a break above could see the pair testing 0.7767 levels. On the flipside, support is likely to be found at 0.7646 (Today's Low) levels and then at 0.7600 levels.
GBP/USD is trading below the 1.50 mark and closer to Friday's close at 1.4952 levels. It posted a high of 1.4983 levels and a low of 1.4947 levels thus far. The immediate resistance level is eyed at 1.5000 levels and a break above could target 1.5060 levels. On the other hand, support is likely to be found at 1.4940, and a break below could extend its losses to 1.4920 levels.
EUR/USD partially trimmed the gains seen on Friday and turned red, trading at 1.0779 levels. The pair is likely to face resistance at 1.0834 levels and a break above could push it to 1.0887 (high Apr.8) and then 1.0947 (high Apr.7). On the downside, support is seen at 1.0693 levels, below that at 1.0666 and finally 1.0640 levels.
