Asia FX Handover

AU employment dispelled rate-cut concerns yet failed to invoke a rally. AUD spiked broadly higher on the release, which saw employment beat expectations by 13.7k and unemployment tick higher 5% in line with consensus. Yet the Aussie failed to hold onto gains, and currently trades around the middle of the pack.
Japan’s flash manufacturing PMI beat expectations although remains in contraction mode for a third consecutive month. Still, at 49.5 it’s the slowest rate of contraction this year, on the verge of moving above 50 and suggests the cycle low could be in.
A US trade representative is ‘tentatively’ set to travel to Beijing on the week of April 29th.
JPY is currently the strongest major, NZD and CAD are the weakest. Low ranges overall as we head towards the final sessions ahead of the Easter weekend. Japanese equities tracked Wall Street lower, with US futures down around -0.3%. WTI remains within a potential bull flag, GBP looks uninspired, trading in a tight range just above 1.30.

Matt Simpson, CFTe, MSTA CityIndex

Author

Matt Simpson, CFTe, MSTA

CityIndex

Matt Simpson is a certified technical analyst who combines charts and fundamentals to generate trading themes.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.