- Japanese March machinery orders showing signs that decline is easing
- China’s foreign direct investment -21% YoY
- NZ Q1 retail sales -2.9%, -0.4% in March
- EUR/JPY technicals; nice resistance close by European open
- Asian stocks generally higher, gold steady, on further recovery hopes.
- “Reserve currency” talk still high on market agenda
- Japan’s Mizuho Bank to raise up to $8.4 billion
- Good buying interest in AUD/NZD
All round quiet day in Asia with most pairs confined to 50 pip ranges and most returning to their NY closing levels. The only currency to lose significant ground was the NZD after further disappointing retail sales figures. Further interest rate cuts remain likely for New Zealand and the AUD/NZD saw some decent buying.
EUR/USD has traded for most of the day between 1.3630/40. The range was 1.3620/49 with some added activity around the Tokyo fix. EUR/JPY jumped early in the session as stops above 96.00 were triggered in USD/JPY. Technical selling of EUR/JPY at 131.15/20 put a cap on any rallies in the morning. As the JPY crosses failed to rally on good gains on the Nikkei, longs started to bail and drove that pair to its session low at 130.45. USD/JPY has traded in a 95.80/96.19 range. Cable has been exceptionally quiet in a 1.5210/40 range.
Markets: Nikkei +1.6%; Shanghai -0.3%; HK +0.8%; Kospi+1.8%; Sydney +0.3%; Gold $927/oz; Brent crude $58.50/bbl.
Have a great weekend.
