- Australian trade deficit for March comes in higher than expected at AUD1.6bln
- RICS: UK housing market activity weakens
- BRC: Shop price and food price inflation fall
- UK Q1 median pay deal 3%
- Fed’s Lacker gives speech on labour market: Risks remain from EZ; US housing recovery likely to take some time
- BOJ tells Fed that its credit rules may hinder Japanese monetary policy
- New Zealand net government debt NZD50bln, or 24.5% of GDP
- South Korean PPI +2.4% YoY, down from 2.8% last month
- USD/CNY mid-point set at 6.2804
- Nikkei +0.6%, Kospi +0.5%, HK +0.3%, Shanghai -0.3%; Gold $1638/oz; Oil $97.80/bbl
The USD has been the stand-out performer, making mild gains across the board in fairly quiet trade.
EUR/USD opened at 1.3060 and has gradually edges its way lower in quiet trade, with no flows or developments of note. Dealers reports sizeable interest either side of a broad 1.2980/1.3080 range and this should ensure a few more sessions of range trading. Our range 1.3023/65
AUD/USD opened above 1.0200 and tried to move higher in early trade but some soggy sentiment in the NZD tended to dominate and the Aussie fell back below 1.0200 prior to the trade data. The AUD1.6bln deficit was worse than expected although heightened economic activity stopped the bears getting too carried away. Ranges: 1.0162/1.0218
USD/JPY has also found some mild demand out of Tokyo but reportedly solid selling interest from real money funds and Japanese exporters between 80.10/20 has remained untested. Ranges: 79.86/80.07
Cable 1.6166/98; EUR/CHF 1.2010/15
