- China’s April trade balance was almost 4 times bigger than forecasts at +$11.4 billion
- USD/CNY fixed at new record low of 6.4950
- Australia’s latest trade balance was also stronger than expected at A$+1.7 billion
- UK retail sales boosted by Easter bank holiday
- UK house price data showing modest improvements
- Fed’s Lacker: Possible that Fed could raise rates this year
- CME raises margin requirements on oil futures, prices fall by 1.5% to $101/bbl for WTI
- Gold $1510/oz, Silver $37.60/oz
- Regional shares pretty flat on the day
Choppy session with most of the majors trading in 50 pip ranges. The trade data from Australia and China showed why capital is continually flowing into the growth region of the world.
EUR/USD opened around 1.4350, rallied to highs around 1.4375 in early trade but the comments from Lacker helped support the USD and then heavy EUR/JPY selling out of Tokyo in the first hour of trade drove EUR/USD to its session lows. It has failed to bounce since and closes near the lows. Ranges: EUR/USD 1.4323/76, EUR/CHF 1.2499/1.2529
USD/JPY has traded in a 30 pip range. Falling US yields have weighed on the pair as has the heavy selling in EUR/JPY. Speculators betting on BOJ intervention continue to buy dips. Ranges: 80.13/43, EUR/JPY 114.93/115.44
The AUD has again been well supported although it has failed on two occasions to break above the well-offered 1.0800/20 window. Dealers bought AUD/USD after both Australian and Chinese trade data releases but offers have been firm. The budget tonight has been well telegraphed as some tough love from the Treasurer. Ranges: 1.0743/1.0803
Cable 1.6381/1.6420, EUR/GBP .8732/60, USD/CHF .8705/43
