Global Markets:

  • Australia (AUD) CB Leading Indicator (FEB): 0.3%, Previous: 0.2%
  • Asian markets are mixed as of 05:00 GMT; the Nikkei is up 0.30 % while the Shanghai Composite and Hang Seng dropped 0.20 % on the day
  • Gold at $1287 (-0.10 %), Silver at $19.33 (-0.10 %), Crude Oil at $103.50 (-0.15 %)
  • US 10 year yield stands at 2.71

FX Flows/Orders:

  • AUD/USD – demand from real money funds drove the pair higher during the Asian session, but offers from hedge funds at 0.9360 capped the topside so far. Bids at 0.9320 and large stops seen beneath the 0.93 level.
  • USD/JPY – remained in a tight range, but trading with a mildly bid tone. Plenty of technical resistance near in form of the 50 % Fibo of 101.30-104.10 at 102.70, the 100 daily MA at 102.90 and the top of the daily Ichimoku cloud at 103.10. A close above 103.00 would confirm the base at 101.30 and pave the way for further gains towards 104.00.
  • USD/CAD – good bids seen towards 1.0980, while to the topside, offers from corporates and leveraged names in front of 1.1050.
  • GBP/USD – stops through 1.6750 in solid size.

Market Sentiment:

Two-way flows are keeping the AUD/USD in a rather tight range ahead of key data releases tomorow in form of Australian CPI and the Chinese HSBC Manufacturing PMI. EUR/USD volatility is at fresh lows and we are currently near the centre of the 1.3700-1.3880 range, with 1.3820 being initial resistance. Focus is on next week’s inflation figures and with no major risk events out of the Euro Zone or the US, the Euro is likely to stay quiet this week.

Upcoming Events:

  • 13:30 GMT – Canada Wholesale Sales (1.0 % MoM)
  • 15:00 GMT – US Existing Home Sales (4.55M)
  • 15:00 GMT – US Richmond Manufacturing Index