Up until last night the price action in all the asset classes was pretty reminiscent of that post the February US Payroll.
That being an aggressive move in the USD and US rates into the Friday night close, to be reversed somewhat on Monday.
The bond markets then forged ahead last month, while the USD remained a little mixed.
The USD this time has forged ahead over-night, led by the NZDUSD on comments from Prime Minister Key about the low level of inflation and putting pressure on the RBNZ into tomorrow's meeting. But the broader USD trend clearly remains intact.
Lloyds Bank notes in a report on Tuesday:
- We start the day with European data, which if positive is likely to see market participants sell into EURUSD and limit the upside, 109.20/1.1045 is trend resistance to watch, while 107.65/40 is still important support ahead of the 1.05 area.
- Unlike this time last month we have no domestic data but we will be listening to the MPC members speaking today, especially McCafferty in terms of him changing his stance and potentially damaging the near term strongly bearish technical stance in GBPUSD which targets new lows. 1.5170-1.5240 is trend resistance from the 1.5550 highs today.
