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The Greenback saw more profit-taking after the FOMC printed its May policy decision. Meanwhile, the Aussie and Kiwi get a boost from Australia’s strong data releases.

  • Japan’s markets out on Constitution Day holiday
  • Australia posts 1.53B surplus vs. 0.68B expected, 1.35B AUD in February
  • Australia’s building approvals improves by 2.6% vs. 1.1% expected, 4.2% decline in February

Major Events/Reports:

Australia’s data releases

Earlier today the Australian Bureau of Statistics revealed that the Land Down Under has a trade surplus of 1.53B AUD for the month of March.

Not only is this waaay better than the expected 0.7B surplus, but it’s also higher than the upwardly revised 1.35B AUD surplus in February. In fact, it’s the best surplus since May 2017!

Components tell us that exports had gone up by 1.0% for the month, thanks to strong gains in cereal grains, manufacturers, and machinery.

Ditto for imports, which inched 1.0% higher on the back of higher purchases of intermediate and other merchandise goods and fuel and lubricants.

Meanwhile, a separate release showed building approvals popping up by 2.6% after declining by 4.2% in February. For reference, analyst had bet on a 1.1% increase for the report.

Overall, today’s releases support the Reserve Bank of Australia’s (RBA) bias that its next move will more likely be a rate hike than a rate cut.

Mixed results ahead of NFP, U.S. – China trade talks

There were no fresh major catalysts after the FOMC statement during the U.S. session, so some Asian session players got busy taking profits ahead of the NFP report and the U.S. and China holding their trade talks in Beijing. Of course, it also didn’t help volatility that Japanese traders were out on a holiday.

  • Nikkei is down by 0.16% to 22,472.8
  • Australia’s A SX 200 is up by 0.67% to 6,097.1
  • Hang Seng is down by 1.66% to 30,214.0
  • Shanghai index is down by 0.16% to 3,076.315

Gold inched higher on a bit of dollar weakness, while oil prices got caught between higher U.S. crude oil inventories and the U.S. possibly putting the pressure on Iran over its nuclear program.

  • Gold is up by 0.30% to $1,308.83
  • Brent crude oil is up by 0.18% to $73.16
  • U.S. WTI is up by 0.22% to $67.81

Major Market Mover(s):

AUD and NZD
The Aussie was boosted by strong Australian data and a bit of risk appetite and it looks like its fellow high-yielding comdoll Kiwi went along for the ride.

AUD/USD is up by 30 pips (+0.40%) to .7523
AUD/JPY is up by 21 pips (+0.26%) to 82.51
AUD/CHF is up by 19 pips (+0.25%) to .7503
GBP/AUD is down by 36 pips (-0.20%)

NZD/USD is up by 20 pips (+0.28%) to .7015
NZD/JPY is up by 11 pips (+0.14%) to 76.93
NZD/CHF is up by 11 pips (+0.16%) to .6997

USD
The Greenback caught some post-event profit-taking and stepped back against its major counterparts.

EUR/USD is up by 31 pips (+0.26%) to 1.1982
GBP/USD is up by 25 pips (+0.18%) to 1.3596
USD/JPY down by 15 pips (-0.14%) to 109.66
USD/CAD is down by 33 pips (-0.25%) to 1.2850
USD/CHF is down by 14 pips (-0.14%) to .9974

Watch Out For:

  • 7:00 am GMT: Spain’s unemployment change (-100.2K expected, -47.7K previous)
  • 8:30 am GMT: U.K.’s services PMI (53.5 expected, 51.7 previous)
  • 9:00 am GMT: Euro Zone CPI flash estimates (y/y) (1.3% expected, 1.3% previous)
  • 9:00 am GMT: Euro Zone core CPI flash estimate (0.9% expected, 1.0% previous)
  • 9:00 am GMT: Euro Zone PPI to remain at 0.1%?