PBoC Fixes USDCNY Reference Rate At 6.8957 (prev fix 6.9042 prev close 6.9050)
Global stocks pressured, safe assets up on rising geopolitical risks – RTRS
Oil hits five-week top on geopolitical tensions, strong demand – RTRS
Most Asian stock markets declined overnight, while safe havens were once again in demand. The Japanese Yen extended gains as USD/JPY fell from 111.00 to a low of 110.58. Meanwhile, Gold recovered to 1257. Geopolitical tensions are keeping traders nervous, and there is little risk appetite in the market. Gold should therefore remain in demand and retest the recent high at 1270 soon.
The commodity currencies are under pressure as well. The Australian Dollar managed to recover slightly yesterday, but reversed those gains overnight as it fell back to 0.7495. Worse than expected NAB business confidence weighed on the AUD too. Following the break below 0.75 support, a test of 0.74 seems likely in the short-term.
The British Pound recovered a bit against the Dollar. The UK will release its inflation numbers for March today, and the traders are anticipating a higher number. Intraday, resistance is seen at 1.2450 and 1.25, while decent support is noted in the area between 1.2350 and 1.2370.