Global Markets:

  • China Manufacturing PMI 50.4 vs 50.5 expected
  • Australia AIG Manufacturing Index: 44.8, Previous: 47.9
  • Australia Import Price Index (q/q): 3.2%, Expected: 1.8%, Previous: -0.6%
  • BoC Governor Poloz says he has no opinion on the level of the Canadian Dollar
  • Fed tapers QE by $10bln to $45bln
  • Fed says will taper in further measured steps if the outlook holds
  • Fed says economy picked up and consumer demand is rising more quickly, the FOMC vote on taper and rate was unanimous
  • The Nikkei is up 1 % on the day while Australia’s ASX lost 0.65 % so far
  • The other major Asian bourses are closed for the May Day
  • Gold at $1288 (-0.50 %), Silver at $19.12 (-0.25 %), Crude Oil at $99.71 (-0.05 %)
  • US 10 year yield stands at 2.655

FX Flows/Orders:

  • AUD/USD – the slightly softer PMI release out of China didn’t have much impact on the Aussie and the pair briefly traded above 0.93. Leveraged names have been the main sellers during the past few sessions, but AUD/USD is staying well-bid and it feels like the stops above the big figure are being targeted. If we break above 0.93, some minor offers at 0.9320, but no major resistance until 0.9360-70.
  • EUR/USD – the market is aware about sizeable stops through 1.3890 and around 1.3910, but struggles to take out the 1.3880 level. Banks report large offers between 1.3880 and 1.3885 on the interbank platforms. To the downside, good support seen around 1.3820. No data releases out of the Euro Zone today, so focus will be on US data.
  • GBP/USD – reached a fresh multi-year high yesterday and briefly traded at the 1.69 figure. Though short-term positioning feels stretched, there is little resistance until 1.70.
  • USD/JPY – little reaction to the FOMC statement as it was in line with market expectations. The lower GDP print yesterday drove the pair lower, but bids pre-102.00 held. Traders note bids are still located there in solid size, while stops are rebuilding through 101.90. To the topside, Asian offers seen towards 102.70.

Upcoming Events:

  • 08:30 GMT – UK Manufacturing PMI (55.4)
  • 12:30 GMT – US Core PCE Price Index (0.2 %)
  • 12:30 GMT – US Initial Jobless Claims (319k)
  • 12:30 GMT – Fed Chair Yellen speaks
  • 14:00 GMT – US ISM Manufacturing PMI (54.3)