The lack of top-tier economic events in the NY session had the market trading on technicals. US stocks managed to eke out a modest rally after a rollercoaster of a day that saw equities down as much as -1.3% and as high as +1.0%. Financials surged +4.8% on the day as hope springs eternal that most 1Q bank earnings will surprise to the upside. Gold maintained earlier gains and was sitting near 893/894 ahead of the NY close. The 100-day SMA sits at 884/885 and a close above that area looks constructive for the precious metal.
Euro was one of the bigger movers as the currency awakened from the London session slumber. EUR/USD started the session by taking out stops into 1.3220/50 and subsequently blasted through the 200hr just above the 1.33 mark. The hourly trendline by 1.3390 managed to slow it down and the top of the Ichimoku cloud lurks at 1.3410 for today. It feels like the pair could be poised for a short-term correction lower if these levels hold.
The yen crosses were a mixed bag and reflected euro strength more than risk appetites. USD/JPY sank -60 pips into the 100 area and just took a spill below that critical level as we approach the NY close. EUR/JPY jumped more than 100 points towards 133.90 and above 134 should see gains extend into the 134.30/50 zone initially. A major US investment bank just reported much better than expected 1Q earnings and this should carry through into the Asia session via better bid JPY crosses.
Upcoming Economic Data Releases (Asia Session) prior expected
- 4/13 22:45 GMT NZ Retail Sales (MoM) FEB -1.10% -0.50%
- 4/13 22:45 GMT NZ Retail Sales Ex-Auto (MoM) FEB 0.30% -0.10%
- 4/14 1:30 GMT AU NAB Business Confidence MAR -22 - -
- 4/14 1:30 GMT AU NAB Business Conditions MAR -20 - -
