- Australia AIG construction index improved from 45.9 to 46.7
- German trade balance and industrial production data due
- Swiss foreign currency reserves and CPI to spark more CHF volatility?
- U.K. trade balance to show wider deficit of 8.7 billion GBP
Looks like the euro finally calmed down in today’s Asian trading session, following its crazy price movements after the ECB rate decision. EUR/USD is currently holding on to the 1.3660 area while EUR/JPY came up a few pips shy of testing the 140.00 mark before retreating. EUR/AUD continued its ascent past the 1.4650 level while EUR/NZD turned lower upon testing the 1.6100 resistance.
Over in Australia, the AIG construction index showed an improvement from 45.9 to 46.7, reflecting a slower pace of contraction in the industry. Despite that, the Australian dollar appeared to have trouble sustaining its recent rallies, as AUD/USD topped at .9344 then slipped to the .9325 area while AUD/JPY fell below the 94.50 handle.
Japan’s leading indicators release caps off the data-light Asian trading session, printing an upward revision to 107.1% for its March report.
In the upcoming trading session, Germany will print its trade balance and industrial production data. The trade surplus is expected to widen from 14.8 billion EUR to 15.1 billion EUR while industrial production could rebound by 0.4%, but these data points might take the backseat as euro traders continue to weigh in on the impact of the ECB’s latest monetary policy decision on the region’s economic prospects.
Also due in the next few hours is Switzerland’s foreign currency reserves data and CPI. These might serve as indicators on whether or not the SNB could take similar action as the ECB, as Chairman Jordan has previously mentioned that ECB easing might force the SNB’s hand in stepping up its efforts to defend the franc peg. U.K. consumer inflation expectations and trade balance are also on today’s docket so watch out for more action among pound pairs as well.
Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.
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