- US 10-yr note nudges through 4% in intraday trade
- ISM non-manufacturing index rises strongly to 55.4 in March from 53.0 in February
- Pending home sales rise 8.2%; much stronger than expected
- US sells $8 bln 9.75 year TIPS at 1.709%, bid-to-cover 3.43
- S&P 500 rises 0.8% to 1187; 18 month high
- Oil closes $1.90 to 86.75%; CRB up 1.1% on global growth
Profit-taking in USD/JPY and EUR/JPY dominated the holiday-thinned US trading session today. Traders were surprised that a continued rise in US bond yields and more strong US economic data were unable to support the JPY pairs.
USD/JPY slipped as low as 94.08, hanging on to 94.05 support at its worst levels. EUR/JPY slipped to 126.94 before pulling out of its dive. Selling of AUD/JPY was seen as well with a number of traders taking some chips off the table ahead of the RBA meeting later.
EUR/USD traded in choppy fashion in New York, supported on dips at the 1.3460 level but offered on rallies toward 1.3530/40. It closes the session at 1.3480 where it spent much of the US afternoon.
Cable probed above the 1.5300 level in early New York trade buoyed by reports that the Tories have pulled out to a double-digit lead. If Labour wants to go to the polls in May, (As had been expected before they tanked in the recent polls) they will have to call the election tomorrow. If they do not, cable could sell off again as the agony is extended once again. Cable reached 1.5320 in NY before spending much of the afternoon in the 1.5280s.
AUD whiled away the session in a 0.9193/0.9218 range, awaiting the RBA tonight. The global back-drop is AUD friendly, so perhaps we will avoid the “sell the news” scenario if the RBA does raise rates to 4.25% Tuesday.
