03.04.2020

Asia roundup: Aussie eases despite better-than-expected retail sales, greenback near 1-week peak as U.S. non-farm payrolls loom, Asian shares steady – Friday, April 3rd, 2020

Market Roundup

  • Oil slip on doubts over Saudi-Russia deal
     
  • Dollar hovers near one-week high
     

Economic Data Ahead

  • (0400 ET/0800 GMT) EZ Markit Services PMI (Mar)     
          
  • (0400 ET/0800 GMT) EZ Markit PMI Composite (Mar)     
     
  • (0430 ET/0830 GMT) UK Markit Services PMI (Mar)         
     
  • (0500 ET/0900 GMT) EZ Retail Sales (YoY) (Feb)
     
  • (0500 ET/0900 GMT) EZ Retail Sales (MoM) (Feb)
     

Key Events Ahead

  • No Significant Events Scheduled

FX Beat

DXY: The dollar index rallied to a 1-week peak as the U.S. Federal Reserve flooded the market with liquidity. The greenback against a basket of currencies traded 0.5 percent up at 100.61, having touched a low of 98.27 last week, its lowest since Mar. 17. 

EUR/USD: The euro declined, hovering towards a near 1-week low hit in the previous session on data that showed Eurozone producer prices fell by much more than expected in February, dragged down by a sharp fall in energy prices as a result of the Russia-Saudi Arabia oil price war. The European currency traded 0.2 percent down at 1.0832, having touched a high of 1.1147 last week, its highest since March 17. Investors’ attention will remain on a series of data from the Eurozone economies, EZ retail sales and Markit service PMI, ahead of the U.S. nonfarm payroll, unemployment data and service PMI from both Markit and ISM. Immediate resistance is located at 1.0890, a break above targets 1.0914 (10-DMA). On the downside, support is seen at 1.0801, a break below could drag it below 1.0760.

USD/JPY: The dollar rose, extending previous session gains as investors await U.S. non-farm payrolls report for March. Economists are forecasting U.S. job losses of 100,000 for last month, a sharp reversal from job gains of 273,000 in February, according to a Reuters poll. The major was trading 0.2 percent up at 108.07, having hit a low of 106.92 on Wednesday, its lowest since Mar. 18. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. nonfarm payroll, unemployment data and service PMI from both Markit and ISM. Immediate resistance is located at 108.50, a break above targets 108.78. On the downside, support is seen at 107.12, a break below could take it near at 106.92.

GBP/USD: Sterling eased amid coronavirus-driven panic in the global market. The British pound is expected to rebound, supported by stimulus packages by the government to limit the economic hit from the coronavirus pandemic, although economists are still predicting a huge global downturn. The major traded 0.4 percent lower at 1.2336, having hit a high of 1.2485 last week, it’s highest since March 13. Investors’ attention will remain on the geopolitical developments ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.2516 (61.8% retracement of 1.3200 and 1.1406), a break above could take it near 1.2600. On the downside, support is seen at 1.2264, a break below targets 1.2174. Against the euro, the pound was trading flat at 87.54 pence, having hit a high of 87.39 on Thursday, it’s highest since Mar. 11.

AUD/USD: The Australian dollar plunged, extending losses for the fourth straight session, as the greenback surged against a basket of currencies. Investors seem to have ignored Australia’s better-than-expected retail sales data and a rebound in the Chinese Caixin Services PMI. The Aussie trades 0.4 percent down at 0.6037, having hit a high of 0.6213 on Tuesday, it’s highest since Mar. 16. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate resistance is located at 0.6146 (21-DMA), a break above could take it near 0.6213. On the downside, support is seen at 0.5989, a break below targets 0.5956.

Equities Recap

Asian shares gained after crude prices notched their biggest one-day surge on record, helping offset concerns about the depth of a global recession.

Tokyo’s Nikkei rose 0.05 percent to 17,820.19 points, Australia’s S&P/ASX 200 index eased 1.7 percent to 5,067.50 points and South Korea’s KOSPI gained 0.05 percent to 1,725.44 points.

Shanghai composite index declined 0.6 percent to 2,763.99 points, while CSI 300 index traded 0.6 percent down at 3,713.22 points. Hong Kong’s Hang Seng traded 0.5 percent lower at 23,172.38 points.

Commodities Recap

Crude oil prices declined after massive gains in the prior session as doubts grew over an oil price deal between Saudi Arabia and Russia that U.S. President Donald Trump said he had struck. International benchmark Brent crude was trading 3.6 percent lower at $28.47 per barrel by 0603 GMT, having hit a low of $21.64 on Monday, its lowest since March 2002. U.S. West Texas Intermediate was trading 2.8 percent down at $24.02 a barrel, after falling as low as $19.29 on Monday, its lowest since Feb. 2002.

Gold prices eased as investors awaited U.S. non-farm payrolls data for further cues on the economic impact of the coronavirus, while a stronger greenback capped the gains. Spot gold declined 0.1 percent to $1,611.53 per ounce by 0606 GMT, having touched a high of $1644.43 last week, its highest since Mar. 12. U.S. gold futures fell 0.2 percent to $1,634.70 per ounce on Friday.

Treasuries Recap

The yields on Japanese government bonds fell slightly, with benchmark 10-year JGB futures easing 0.08 point to 152.66. The 10-year JGB yield fell 0.5 basis point to minus 0.010 percent. The 20-year JGB yield fell 0.5 basis point to 0.265 percent. At the long end of the yield curve, the 30-year JGB yield fell 0.5 basis point to 0.385 percent, while the 40-year JGB yield fell 0.5 basis point to 0.395 percent. The five-year yield rose 1 basis point to minus 0.120 percent. The two-year JGB yield was flat at minus 0.140 percent.

Source: FXWire Media Round Ups

3. April 2020 09:49:22