- Empire State manufacturing index 22.9 in March from 24.9 in February
- US TIC data shows net outflow of $33.4 in January
- US industrial production rises 0.1% in February after 0.9% in January; eighth straight rise; stronger than consensus for a 0.2% decline
- Trichet: Greek austerity package should be respected by rating agencies; collateral rules could be changed
- Eurogroup’s Juncker: Eurogroup discussing several options for Greece
- EU scolds UK on budget plans
- NAHB index falls 2 points to 15
- 130 congress people ask Treasury to label China a currency manipulator
- White House downplays China tensions
- S&P 500 virtually unchanged at 1150.5
- US yields drop 1 bp to 0.94% in 2-year maturity
Risk aversion was the early theme today as the growing rift between China and the US was cause for concern as was commentary from Moody’s on the vulnerabilities to the AAA sovereigns (US, UK Germany and France) over the medium-term.
EUR/USD fell for much of the US morning, weighed down by heavy sales from a Swiss bank, rumored to be approximately EUR 1 bln. Prices slipped below 1.3670 support late this morning which triggered a wave of stop-loss sell orders. Prices fell as low as 1.3639 moments after the 16:00 GMT fixing. We slowly recouped some lost gound in the afternoon, ending around 1.3675. Offers reside in the 1.3700 region on rebounds, traders say. Bids are eyed in the 1.3620/25 area.
GBP/USD retreated as low as 1.5021 with the Moody’s comments and M&A-related sales seen as a catalyst. More stops lie below the 1.5000 level, traders report. 1.5085 and 1.5120 are resistance levels on rebounds near-term.
USD/JPY was a victim of risk aversion, slipping as low as 90.36. EUR/JPY was a victim as well, falling to 123.32 after lots of stops were triggered after the move back below the pivotal 123.90/124.00 area. That area should cap rebounds in the near-term. The cross closes around 123.77.
AUD fell as low at 0.9096 on risk aversion but rebounded impressively in thin afternoon trade, ending around 0.9144.
