Global Markets:

  • Asia stock markets: Nikkei down 0.35 %, Shanghai Comp and ASX both up 0.25 %, Hang Seng rose 0.40 %
  • Commodities: Gold at $1280 (+0.40 %), Silver at $19.45 (+0.20 %), Crude Oil at $93.80 (-0.20 %)
  • Rates: US 10 year yield at 2.41

FX Update:

  • AUD – AUD/USD opened in Asia around 0.93 after a stroung bounce off 0.9240 support. The currency has been supported by strong cross flows, especially in AUD/JPY. Bids are building at 0.9280, key tech support at 0.9240. To the topside, immediate resistance at 0.9340 and offers pre-0.9350. AUD/JPY has closed the day above the 2014 high at 96.50, which signals a test of 98.15 could be near. AUD/NZD consolidated in a 1.1050-1.11 range, but risk is to the topside and we could see a test of 1.12 first before the uptrend gets exhausted.
  • CAD – USD/CAD failed to break above 1.10 for the third time this month, which led to some position covering ahead of the Yellen speech. Asia reports good bids towards 1.0920 and expect the 1.09 level to hold ahead of the Canadian inflation and retail sales data at 12:30 GMT.
  • EUR – EUR/USD managed to bounce as well, despite mixed Euro Zone & strong US econ data yesterday. The pair traded in a tight range during the Asian session and flows were light, but the Euro remains overall supported by cross flows. With no data releases during the European session, the focus is now on the Fed Chair Yellen speech later in the day, followed by a speech by ECB President Draghi in the evening hours. Key tech support at 1.3228, bids 1.3220-25 and again pre-1.32 barriers.
  • JPY – Specs tried again to push USD/JPY through 104.00 in the early Asian session, but failed at 103.94 amid option-related supply pre-104.00. The pair declined to 103.70 and position covering could see the pair test the 103.50 bids in the London session. Trailing stops through 103.40. To the topside, tech resistance at 104.15 and then 105.43 (post-Abenomics high).

Upcoming Events:

  • 12:30 GMT – Canadian CPI (-0.1 % MoM, 2.2 % YoY)
  • 12:30 GMT – Canadian Core CPI (0.0 % MoM, 1.8 % YoY)
  • 12:30 GMT – Canadian Retail Sales (0.6 % MoM9
  • 14:00 GMT – Fed Chair Yellen speaks
  • 18:30 GMT – ECB President Draghi speaks