Global Markets:

  • China Trade Balance +18.45B vs +13.90B expected
  • China Exports +0.9 % vs -1.7 % expected
  • China Imports +0.8 % vs -2.3 % expected
  • Australia Employment Change 14.2k vs 6.8k expected
  • Australia Participation Rate 64.7 % – in line with forecast
  • Asian equity markets are higher this morning; the Nikkei gained 1.20 % while the Shanghai Composite rose 1.10 %
  • Gold at $1290 (+0.10 %), Silver at $19.29 (-0.30 %), Crude Oil at $100.85 (+0.10 %)
  • US 10 year yield at 2.62

 FX Flows/Orders:

  • AUD – AUD/USD rallied to 0.9375 after employment data beat expectations (+ the March revision was higher) and strong Chinese trade figures. Dealers note bids resting at 0.9315/20, while better selling interest expected ahead of 0.94. Cross flows are supportive with specs again buying AUD/NZD & selling EUR/AUD overnight.
  • CAD – USD/CAD was very quiet yesterday and the Yellen speech was a non-event. Dealers mention that the better offers have moved up to 1.0935/40, so the market might go for the trailing stops above 1.0920. Bids start from 1.0880 and are increasing towards 1.0850.
  • EUR – All quiet ahead of the ECB rate decision & Draghi press conference. Real money funds and reserve managers have been consistent buyers of the EUR/USD during the past few sessions and dealers see real money bidding the pair around 1.39. Stops above 1.3950 and larger supply starting at 1.3980, ahead of the 1.40 barrier option.
  • JPY – Traders saw good offers at 101.95 on the interbank platforms, which capped the topside. Sizeable bids from 101.40 down to 101.25. CTAs reported to have stops scattered between 101.20 and 101.30.

 Upcoming Events:

  • 06:00 GMT – German Industrial Production (0.2 % MoM)
  • 07:00 GMT – Spanish Industrial Production (1.7 % YoY)
  • 07:15 GMT – Swiss CPI (0.1 % MoM, 0.1 % YoY)
  • 11:00 GMT – Bank of England Interest Rate Decision (0.50 %)
  • 11:45 GMT – ECB Interest Rate Decision (0.25 %)
  • 12:15 GMT – Canadian Housing Starts (175k)
  • 12:30 GMT – ECB Press Conference
  • 12:30 GMT – US Initial Jobless Claims (325k)