Asia FX Handover - RBA Signals A June Cut

In a speech today Governor Lowe said the RBA are considering cutting rates at their June meeting. Wage growth is too slow to be consistent with their inflation target and lower rates would support employment and help lift inflation toward target. Earlier in the session TheRBA minutes reiterated a case to cut rates, although it was Lowe’s comments which sent AUD lower.
APRA announced they’re reviewing the 7.25% ‘loan buffer’ currently required for Australian loan applications, a move which could see lending rise to help support the falling housing market.
Earlier, Fed Powell said he only sees 'moderate risks' to financial system from high levels of business borrowing. However, business debt at historic levels should cause businesses and investors to 'pause and reflect'.
GBP and USD are the strongest majors, AUD is broadly weaker after losing the most ground against the Canadian dollar and British pound. Led by China, Asian equities were mostly higher despite a weak lead from Wall Street. Japanese shares are in the red.

Matt Simpson, CFTe, MSTA CityIndex

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Matt Simpson, CFTe, MSTA

CityIndex

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

EUR/USD weakens as US jobs data trims Fed rate cut bets

The EUR/USD pair trades in negative territory for the third consecutive day near 1.1860 during the early European session on Thursday. Traders will keep an eye on the US weekly Initial Jobless Claims data. On Friday, the attention will shift to the US Consumer Price Index inflation report.

GBP/USD bullish outlook prevails above 1.3600, UK GDP data looms

The GBP/USD pair gains ground near 1.3635, snapping the two-day losing streak during the early European session on Thursday. The preliminary reading of UK Gross Domestic Product for the fourth quarter will be closely watched later on Thursday. The UK economy is estimated to grow 0.2% QoQ in Q4, versus 0.1% in Q1.

Gold remains on the defensive below two-week top; lacks bearish conviction amid mixed cues

Gold sticks to modest intraday losses through the Asian session on Thursday, though it lacks follow-through selling and remains close to a nearly two-week high, touched the previous day. The commodity currently trades above the $5,070 level, down just over 0.20% for the day, amid mixed cues.

UK GDP set to post weak growth as markets rise bets on March rate cut

Markets will be watching closely on Thursday, when the United Kingdom’s Office for National Statistics will release the advance estimate of Q4 Gross Domestic Product. If the data land in line with consensus, the UK economy would have continued to grow at an annualised pace of 1.2%, compared with 1.3% recorded the previous year.

The market trades the path not the past

The payroll number did not just beat. It reset the tone. 130,000 vs. 65,000 expected, with a 35,000 whisper. 79 of 80 economists leaning the wrong way. Unemployment and underemployment are edging lower. For all the statistical fog around birth-death adjustments and seasonal quirks, the core message was unmistakable. The labour market is not cracking.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.