Asia Brief: Australia Consumer Confidence Index 111.3 vs 113.3 previous. China FDI -14 % vs +0.8 % f/c. Japan FinMin Aso said decision on sales tax increase will be made by end of this year. RBA Assistant Governor Kent said any decline in AUD acts as econ stimulus, difficult to know where there AUD should be on a fundamental basis.
Global Markets: Nikkei is down 0.20 %, Shanghai Comp lost 0.10 %, ASX fell 0.50 %. Gold at $1237 (+0.15 %), Silver at $18.75 (+0.60 %), Crude Oil at $91.88 (-0.10 %). US 10 year yield at 2.58.
FX Overview: The RBA meeting minutes were largely an non-event, but the AUD/USD moved a bit higher as the central bank expressed concerns about inflated house prices. Other than that, the RBA comments were mostly unchanged from last month, with the bank seeing a period of stability for rates the most prudent course. The topside in AUD/USD was capped at 0.9053, as leveraged names and real money funds were happy to sell into the rally. The pair is now consolidating around the 0.90 level and a test of 0.8950 support seems imminent. Stops resting through 0.8980 (0.8982 was yesterday's low).
USD/JPY fell to 106.92 as Tokyo returned from a holiday, but the move was quickly retraced amid buying from local importers & investors, as well as US leveraged names. Option-related supply noted in front of the 107.50 level, with stops building above. Further consolidation ahead of the FOMC tomorrow is likely. A more hawkish Fed could pave the way for a 109.00 test, while a slightly more dovish bias would probably cause a retracement back to the 106.00 level.
Looking ahead, we have UK inflation data at 0830 GMT and German ZEW Econ Sentiment data at 0900 GMT as main events of the upcoming session.
Good luck!
Global Markets: Nikkei is down 0.20 %, Shanghai Comp lost 0.10 %, ASX fell 0.50 %. Gold at $1237 (+0.15 %), Silver at $18.75 (+0.60 %), Crude Oil at $91.88 (-0.10 %). US 10 year yield at 2.58.
FX Overview: The RBA meeting minutes were largely an non-event, but the AUD/USD moved a bit higher as the central bank expressed concerns about inflated house prices. Other than that, the RBA comments were mostly unchanged from last month, with the bank seeing a period of stability for rates the most prudent course. The topside in AUD/USD was capped at 0.9053, as leveraged names and real money funds were happy to sell into the rally. The pair is now consolidating around the 0.90 level and a test of 0.8950 support seems imminent. Stops resting through 0.8980 (0.8982 was yesterday's low).
USD/JPY fell to 106.92 as Tokyo returned from a holiday, but the move was quickly retraced amid buying from local importers & investors, as well as US leveraged names. Option-related supply noted in front of the 107.50 level, with stops building above. Further consolidation ahead of the FOMC tomorrow is likely. A more hawkish Fed could pave the way for a 109.00 test, while a slightly more dovish bias would probably cause a retracement back to the 106.00 level.
Looking ahead, we have UK inflation data at 0830 GMT and German ZEW Econ Sentiment data at 0900 GMT as main events of the upcoming session.
Good luck!
Recommended Content
Editors’ Picks
AUD/USD holds steadily as traders anticipate Australian Retail Sales, Fed’s decision
The Aussie Dollar registered solid gains against the US Dollar on Monday, edged up by 0.55% on an improvement in risk appetite, while the Greenback was crushed by Japanese authorities' intervention. As Tuesday’s Asian session begins, the AUD/USD trades at 0.6564.
EUR/USD finds support near 1.0720 after slow grind on Monday
EUR/USD jostled on Monday, settling near 1.0720 after churning in a tight but lopsided range as markets settled in for the wait US Fed outing. Investors broadly expect US rates to hold steady this week, but traders will look for an uptick in Fed guidance for when rate cuts could be coming.
Gold prices soften as traders gear up for Fed monetary policy decision
Gold price snaps two days of gains, yet it remains within familiar levels, with traders bracing for the US Fed's monetary policy decision on May 1. The XAU/USD retreats below the daily open and trades at $2,334, down 0.11%, courtesy of an improvement in risk appetite.
Will Bitcoin ignore major macro market developments this week?
Bitcoin price will be an interesting watch this week, with increased volatility expected amid crucial events lined up in the macro market. On Tuesday, Hong Kong will be debuting its BTC and ETH ETFs while the next day will see FOMC minutes make headlines.
Gearing up for a busy week: It typically doesn’t get any bigger than this
Attention this week is fixated on the Federal Reserve's policy announcement scheduled for Wednesday. While the US central bank is widely expected to remain on hold, traders will be eager to discern any signals from the Fed regarding the possibility of future interest-rate cuts.