- Japanese markets are out on Showa Day
- NZ trade surplus rises to 92 million NZD in March vs. 90 million NZD expected
- Falling iron ore prices weighs on AUD
Zzzzz… We saw another eventless trading session today as the lack of major economic reports and the absence of the Japanese markets took its toll on volatility.
The only currency that saw action was the Aussie, which fell by as much as 65 pips against the pound, 34 pips against the yen, and 31 pips against the Greenback on falling iron prices. Not surprisingly, the Kiwi also didn’t get any support despite its better-than-expected trade balance data.
Prices of iron ore, one of Australia’s largest exports, fell to its six-week low when China announced its plans to tighten its belt on loans for iron imports. Word around the hood is that steel mills and traders have been using iron import loans to stay afloat.
While the comdolls struggled against the dollar, other major currencies like the euro and the pound slowly (but insignificantly) ground higher. EUR/USD and GBP/USD went up by no more than 30 pips since the session started.
Let’s hope we see more action from both the euro and the pound today! Between 6:00 am to 8:00 am GMT we’re scheduled to see Germany’s consumer confidence (expected to remain at 8.5) and inflation (expected to drop by 0.1%) numbers.
Then, at 8:30 am GMT traders will pay attention to the U.K.’s quarterly preliminary GDP reading. Analysts are looking for a 0.9% growth from the previous quarter but a stronger-than-expected figure could inspire talks of higher BOE interest rates and jumpstart another pound rally.
Keep close tabs on these reports, forex geeks!
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