Japan Nikkei Manufacturing PMI for March (preliminary): 52.6 (prior 53.3)
Japan manufacturers index +25 in March vs +20 in February
PBOC sets USD/CNY central rate at 6.8845 (vs. yesterday at 6.8856)
Fed's Kaplan: Fiscal reforms could provide upside to growth forecast
Kaplan: Policies that slow work force growth would raise concerns
Kaplan: Making reasonably good progress on 2% inflation
Kaplan: We are approaching full employment
Dollar, stocks edge up as U.S. healthcare vote back on – RTRS
The US Dollar recovered slightly in Asia. USD/JPY bounced once again off 110.60 support and rallied to 111.45. Resistance is noted at 111.60, followed by 112. The technical outlook remains negative, and selling interest on larger rallies is likely to be high. Much will depend on whether US President Trump will be able to pass his healthcare reform today. A failure would signal that it will be difficult to pass his tax reform as well. The announced tax reform is one of the major reasons why the US stock market and the Dollar rallied.
GBP/USD jumped above 1.25 yesterday, following stronger than expected retail sales data. Techs have turned positive and suggest the rally could continue to 1.27. Meanwhile, the Euro is coming under pressure again after the topside was capped at 1.0820 resistance. The upcoming French election still weighs on the currency.
Meanwhile, the Australian Dollar weakened amid the risk-off sentiment. AUD/USD fell to 0.7610 overnight and a break sub-0.76 would signal that another decline towards 0.75 is likely.