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Forex Today: AUD shrugs-off solid NAB, UK Budget, US inflation - Key

Forex today in Asia was a quiet affair in early trades, but volatility soon picked-up as risk sentiment improved. The Yen lost footing amid a solid rally in the Nikkei 225 index, as markets looked past the Japanese political woes. The USD/JPY pair staged a solid rebound and headed back towards the 107 handle amid broad-based US dollar recovery, as traders reposition ahead of the US inflation data.  The Aussie failed to sustain the bid tone and turned negative, despite upbeat NAB survey while the Kiwi stood resilient above the 0.73 handle.

Among the commodities, Gold prices on Comex traded near the $ 1320 mark, little changed on the day while both crude benchmarks traded marginally lower ahead of the US API crude stockpiles data.

Main topics in Asia

Larry Kudlow a contender to replace Gary Cohn - Reuters

Larry Kudlow, an economic analyst and a Conservative commentator for CNBC based in New York, is apparently on a short-list of considerations to replace Gary Cohn as the top economic advisor to Donald Trump.

Pushback expected as Trump seeks lower EU tariffs on US goods - Reuters

Donald Trump announced late Monday that Wilbur Ross, the US Commerce Secretary, will be asking the European Union to lower trade barriers to the US. Trump's opinion is being flatly rejected by the EU, as reported by Reuters.

RBNZ's Spencer - macro-prudential policy ultimately can't control the housing cycle

Comments from RBNZ head Spencer are crossing the wires via Reuters …

Australia business conditions index hit a record high in February - NAB survey

The National Australia Bank's business conditions index moved 3pts higher to a new record high of +21 index points in February, beating the estimated drop to +16 index points from the previous month's figure of +19 index points. 

Embattled Japanese finance minister considering skipping G20 meeting - Reuters

Reuters is reporting that Japanese Finance Minister Taro Aso will be skipping a G20 finance ministers' meeting happening this month in Buenos Aires according to Japanese media sources.

Key Focus ahead

Markets gear up for the main market moving events for today, with the immediate focus now on the UK’s annual Budget release/ Spring Statement, in which the UK Finance Minister Hammond outlines the budget for the year alongside providing details on the expected spending and investment plans.

Next key risk event for the markets remains the US inflation report, with the headline CPI figures to soften to 0.2% m/m versus 0.3% last. This gauge will be closely eyed for fresh hints on the US interest rates outlook.

Besides, the speech by the Bank of Canada (BOC) Governor Poloz will remain in focus, as he is likely to speak on the Canadian labor market.

EUR/USD - Focus on US inflation and yield differential

Traditional FX market correlations like yield differential and exchange rate broke down in the fourth quarter of 2017. Coming into 2017, EUR/USD was solidly bid, despite widening US-DE (German) two-year and 10-year yield spread.

GBP/USD trading steady ahead of the US inflation and the UK budget report

The GBP/USD is surprisingly resilient this week, climbing on thin volumes for Monday and hanging onto gains heading through Tuesday's early trading session, and the pair is trying to hold territory above 1.3900 …

UK’s Annual Budget release preview - Barclays

The Barclays Research Team is out with their expectations on the UK’s Spring Statement, also known as the annual Budget release, due later today at 1130 GMT.

US inflation preview: Headline CPI to rise 0.1% m/m and 2.1 % y/y - Barclays

Analysts at Barclays offer a brief preview on the key US inflation report due on the cards later on Tuesday at 1230 GMT.

GMT
Event
Vol.
Actual
Consensus
Previous
Monday, Mar 12
24h
 
 
24h
 
 
Tuesday, Mar 13
24h
 
 
11:00
 
107.1
106.9
11:30
 
 
12:30
 
0.2%
0.3%
12:30
 
2.2%
2.1%
12:30
 
1.8%
1.8%
12:30
 
254.86
255.29
12:30
 
248.885
247.867
12:30
 
0.2%
0.5%
12:55
 
 
3.8%
12:55
 
 
-0.5%
14:30
 
 
15:30
 
 
1.55%
17:00
 
 
3.121%
20:30
 
 
5.661M
21:45
 
$-2.40B
$-4.68B
21:45
 
-2.6%
-2.6%
22:10
 
 
23:30
 
 
-2.3%
23:50
 
 
23:50
 
5.6%
-11.9%
23:50
 
0.6%
-5.0%
Wednesday, Mar 14
24h
 
 
02:00
 
9.8%
9.4%
02:00
 
6.1%
6.2%
02:00
 
7.0%
7.2%

Author

Dhwani Mehta

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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