Profit-taking was the name of the game during the Asian session, as forex players brace themselves for another round of potentially volatile European and U.S. sessions.
- AU MI leading index inches up by 0.1% vs. 0.1% decline in February
- AU ANZ-Roy Morgan consumer confidence slips from 114.8 to 112.6 from the previous week
- AU new motor vehicle sales pops up by 1.9% vs. 2.7% slip in February
Australia’s data releases – The Aussie failed to find support from today’s set of data, as they’re not only low-tier releases, but also showed mixed results.
The Westpac-Melbourne Institute Leading Index inched up by 0.1% in March. This marked the eighth consecutive increase for the index and hinted that “we can expect solid growth in the first half of 2017.”
Meanwhile, a separate release reflected a 1.9% increase in new motor vehicle sales in March after seeing a 2.7% decline in February. However, trend estimates see March’s growth as 0.3% lower compared to February this year.
Last but not the least is a weekly consumer confidence report, which slipped a couple of points from the previous week. Not good for the RBA, which is already worried about lower consumer expenditure in Australia.
Dollar gains back some pips – The Greenback gained back some of its losses after getting clobbered in the previous sessions.
One possible reason is profit-taking. Those who have reacted to weak U.S. reports and Trump saying that the dollar is “getting too strong” might have taken off their positions in the absence of new catalysts.
And then there’s overall risk aversion. Uncertainty over North Korea, the U.K.’s snap elections surprise, and the upcoming French Presidential elections might have driven traders into the arms of the low-yielding dollar.
Nikkei slipped by 0.01% and Australia’s A SX 200 fell by 0.62% while Hang Seng and the Shanghai index dropped by 0.70% and 1.11%, respectively.
USD – Profit-taking and a bit of risk aversion inspired retracements from the dollar’s selloff.
EUR/USD slipped by 15 pips (-0.14%) to 1.0719, GBP/USD dipped by 18 pips (-0.14%) to 1.2827, USD/JPY inched 16 pips (+0.15%) higher to 108.61, and USD/CHF popped up by 17 pips (+0.17%) to .9975.
AUD – The Aussie got knocked down again today thanks to other Asian session traders catching up to yesterday’s trends and not-so-rosy reports released from Australia.
AUD/USD is down by 35 pips (-0.46%) to .7525, AUD/JPY dipped by 26 pips (-0.32%) to 81.72, and AUD/NZD fell 46 pips lower (-0.43%) to 1.0689.
Watch Out For:
- 8:00 am GMT: Italian trade balance (2.24B EUR expected, -0.57B previous)
- 9:00 am GMT: Euro Zone’s final CPI (y/y) expected to remain at 1.5%
- 9:00 am GMT: Euro Zone’s final core CPI (y/y) expected to remain at 0.7%
- 9:00 am GMT: Euro Zone’s trade balance (18.6B EUR expected, 15.7B EUR previous)