Signs of peaking in the coronavirus outbreak worldwide and better than feared Chinese Trade data helped boost the sentiment in Asia this Tuesday. The risk-friendly market environment dulled the attractiveness of the safe-havens – US dollar and gold.
With the US and some of the Asia-pacific countries mulling re-opening a part of their economies amid declining death toll, the Asian equities rallied with the US stock futures while Gold prices extended correction from a new seven-year peak of $1725.69.
Amid broad dollar weakness, EUR/USD extended gains above 1.0900 while the cable also remained strongly bid above 1.2550 despite expectations of lockdown extension in the UK. Meanwhile, USD/JPY traded on the defensive around 107.65 region. The commodity-currencies benefited the most amid the recent surge in gold, oil and copper prices. AUD/USD clocked a fresh five-week high near 0.6430 while the kiwi regained 0.6100. USD/CAD dropped below 1.3900 as oil prices rebounded, with WTI back above the 22 handle.
Main topics in Asia
UK’s Raab suggests UK lockdown could last at least another month – The Guardian
Saudi Energy Minister: effective global oil cuts above 19 million bpd – Reuters
US President Trump: Strategy to slow the coronavirus spread is working
Trump: We're very close to completing a plan to open our country, hopefully even ahead of schedule
IMF to provide immediate debt service relief to 25 member countries
Texas oil and gas regulators to meet Tuesday morning to consider oil production limits
Reported COVID-19 cases around the world surpassed 2 million
China reports 89 new coronavirus cases in the mainland on April 13 vs 108 a day earlier
NZ FinMin Robertson: Talking with industries to allow work to resume
NAB Business Confidence Index slumps to -66 in March
China’s Trade Balance (CNY): Returns to surplus in March, imports pop while exports drop
China’s March Trade data (USD): Surplus beats estimates as imports drop marginally
Japan’s Aso: Will allow firms to extend deadline for submission of securities report to end-Sept
Key focus ahead
The session ahead is a thin-showing, in terms of the economic news, with the only highlight being the Indonesian monetary policy decision due at 0730 GMT. However, the EUR, GBP traders will watch out for the coronavirus related developments in the Euro area economies and the UK, with the Foreign Secretary Dominic Raab to announce on the lockdown extension.
In NA session, a lack of the first-tier US macro news, the focus will remain on the Wall Street sentiment and the US coronavirus statistics for near-term trading impetus. For oil and CAD traders, the weekly Crude Stocks data from the American Petroleum Institute (API) will be closely eyed at 2030 GMT.
EUR/USD rises on broad-based dollar weakness
EUR/USD gains as signs of peaking in the virus outbreak weigh over the US dollar. Above-forecast China March yuan-denominated trade data is supporting risk reset. The spot appears on track to challenge the 50-day average resistance.
GBP/USD: Firmer above 1.2550 despite fears of extended lockdown in the UK
GBP/USD refreshes the monthly top amid the broad US dollar weakness. Coronavirus keeps flashing red signals, comparatively more for the US. The UK Deputized leader Raab signals one more month of lockdown.
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