Market Brief

The risk appetite improved since yesterday once the bogus on explosions in White House were officially denied. S&P500 index registered a drop to 1,562.50 and quickly recovered over 1,575. The Asian equity markets rallied overnight. The Nikkei 225 surged 2.3%, Hang Seng and Shanghai’s Composite advanced 1.5% and 0.95%, while the South Korean Kospi index added 1%.

USDJPY and JPY crosses were bid overnight. USDJPY traded up to 99.76. Solid offers are still tight ahead 100.00 level, however reported less than yesterday with vanilla options expiring on daily basis. Massive stops are eyed above 100.00.

As widely expected, the RBNZ kept its official cash rate unchanged at 2.5% and is expected to hold it there through the end of the year. RBNZ stated that NZD remains overvalued, higher-than-forecasted, while the inflation is expected to remain close to the lower target range in 2013. The NZX 50 stocks advanced 0.50%, kiwi climbed to 0.8458, yet registered decent resistance at its 21-day MA (0.8447) overnight.

In Australia, the lower-than-expected CPI boosted the markets. The ASX 200 added 1.72% and the 10-year government bond yield fell to its five month low. Aussie traded to 1.0276 on domestic exporter and AUDJPY demand and retraced down to 1.0232 on the soft CPI reading as the risk of a further rate cut from RBA is now seen higher.

Euro consolidated losses on disappointing PMI figures released yesterday. EURUSD fell to hit its 21-day MA (1.2976) and rebounded to trade in a tight range around 1.3000 level. EURJPY remained well supported over 128.86, while EURGBP and EURCHF were little changed in Asia. In Switzerland, the UBS consumption indicator was roughly improved to 1.25 from 1.24 revised figures in February. USDCHF rallied to 0.9464 from 0.9328 on the supportive trade data released yesterday.

Today, the focus is on Spanish March Producer Prices m/m & y/y, German April IFO Business Climate, Current Assessment & Expectations, Italian February Retail Sales m/m & y/y, US MBA Mortgage Applications, US March Durable Goods Orders, US March Capital Goods News Orders Nondefense Ex Aircraft and Parts m/m and US Capital Goods Shipments Ex Air.

Snap Shot

Global Indexes Current Level % Change
Nikkei 225 Index 13,843.46 2.3194
Hang Seng Index 22,128.91 1.478
Shanghai Index 2,205.75 0.9511
FTSE futures 6,363.00 0.3229
DAX futures 7,682.00 0.1564
SMI Futures 7,778.00 0.1803
S&P future 1,576.60 0.1906

Global Indexes Current Level % Change
Gold 1,428.03 1.0633
Silver 23.18 0.9582
Crude wti 89.79 0.684
VIX 13.48 -6.6238
USD Index 83.01 -0.0482

Todays Calender Estimates Previous Country/GMT
SZ Mar UBS Consumption Indicator - 1.26 CHF/07:00
SP Mar Producer Prices m/m - 0.2% EUR/08:00
SP Mar Producer Prices y/y - 2.1% EUR/08:00
GE Apr IFO - Business Climate 106.2 106.7 EUR/09:00
GE Apr IFO - Current Assesment 109.5 109.9 EUR/09:00
GE Apr IFO - Expectations 103.0 103.6 EUR/09:00
IT Feb Retail Sales SA m/m -0.1% -0.5% EUR/09:00
IT Feb Retail Sales y/y - -3.0% EUR/09:00
US MBA Mortgage Applications - 4.8% USD/12:00
US Mar Durable goods Orders -3.0% 5.7% USD/13:30
US Mar Durables Ex Transportation 0.5% -0.5% USD/13:30
US Mar Cap Goods Orders Nondef Ex Air 0.3% -2.7% USD/13:30
US Mar Cap Goods Ship Nondef Ex Air 1.0% 1.9% USD/13:30


Currency Tech

EURUSD
R 2: 1.3140
R 1: 1.3074
CURRENT: 1.3000
S 1: 1.2973
S 2: 1.2878

GBPUSD
R 2: 1.5410
R 1: 1.5345
CURRENT: 1.5242
S 1: 1.5180
S 2: 1.5034

USDJPY
R 2: 102.33
R 1: 100.00
CURRENT: 99.66
S 1: 98.50
S 2: 97.17

USDCHF
R 2: 0.9635
R 1: 0.9570
CURRENT: 0.9451
S 1: 0.9380
S 2: 0.9330

  • S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot