- Australian retail sales for March -0.5% MoM, against expectations of +0.5% MoM
- Building approvals stronger than expected at +9.3% MoM
- New Zealand unemployment rate better than expected at 6.6% in April
- Fed’s Lockhart sees employment growth slow and steady
- NIESR lowers 2011 UK growth forecast
- Precious metals consolidate after more overnight losses caused by further margin-requirement adjustments; Gold $1517/oz, Silver $39/oz
- Tokyo and Korea closed today. Regional stockmarkets flat.
Fairly quiet session again with Tokyo closed but there have been some movements in the cross pairings, EUR/AUD being one notable mover.
The NZD caused the first slight move of the session, popping 30 pips higher after some favourable jobs data, This also encouraged some short-covering in the AUD/USD after a big move lower overnight. This move in the AUD reversed sharply after the poor retail sales data was released. There was also a significant move higher in the EUR/AUD as it jumped 120 pips quite quickly. AUD/USD is so far being supported by the 20-day MA at 1.0693 but more stops lie in wait below 1.0670. Ranges: AUD/USD 1.0690/1.0770; EUR/AUD 1.3772/1.3898
EUR/USD has been well supported by the cross buying but has been capped by some reasonably sized sell orders between 1.3850/65. Dips have been shallow nonetheless with more traders sensing that the ECB might in fact put the ‘strong vigilance’ term into their statement thereby signalling a June hike. Ranges: EUR/USD 1.4805/66, EUR/JPY 119.24/78, EUR/CHF 1.2749/79
USD/JPY continues to drift slowly lower despite the reports of large buying over last few days. More large bids are again being reported from 80.40 down through 80.15 and the presumption is that there is some semi-official Japanese interest there. Large stops noted below 80.10 and 80.00. Ranges: USD/JPY 80.42/69
Cable 1.6480/1.6520, EUR/GBP .8978/98, USD/CHF .8584/.8619
