Market Roundup
- China cuts benchmark lending – depo rates 25 bps to 5.1%, 2.25% to boost economy, economy still faces big downward pressure.
- China April CPI +1.5% y/y, PPI -4.6%, +1.6%, -4.4% eyed, March +1.4%, -4.6%.
- Australian conservatives readying for more cautious, do or die second budget.
- Australia April NAB biz conditions index +4, confidence +3, March +6, +3.
- NZ April electronic card retail sales -0.7% m/m, 1st fall in 9-mos, +3.9% y/y.
- NZ March-end net govt debt NZ$63.04 bln, 26.5% of GDP, 27.2% forecast.
- IMM data indicates shift to carry trades, AUD moves from net short to net long positions, short CAD positions pared, JPY shorts up.
- Britain’s Cameron to speed up EU talks before referendum.
- EuroZone set to report solid growth for a change.
- With funding deal elusive, Greece rides into storm.
- EC Timmermans – No “Plan B” for Greece in debt talks.
Economic Data Ahead
- (0200 EDT/0600 GMT) Sweden April unemployment; last 7.9%.
- (0400 EDT/0800 GMT) NO Apr CPI, +0.4% m/m, +2.0% y/y eyed; last +0.3%, +2.0%.
- (0400 EDT/0800 GMT) NO Apr – core, +0.5% m/m, +2.3% y/y eyed; last +0.4%, +2.3%.
- (0400 EDT/0800 GMT) NO Apr PPI; last -6.1%.
- (1000 EDT/1400 GMT) US May employment trends index; last 127.7.
Key Events Ahead
- N/A EuroGroup meeting in Brussels.
- N/A Germany E2 bln 6-mo Bubill, France 3/6/12-mo BTF, Norway t-bill auctions.
- (0700 EDT/1100 GMT) BoE MPC announcement, no change in 0.5% bank rate, GBP375 bln QE eyed.
FX Recap
EUR/USD is trading at 1.1142 levels and made high of 1.1202 so far. Pair broke major support levels of 1.1158 and made low of 1.1132. Euro group meeting will be main focus today. Last Friday, US NFP data came with surprise, released with Flat numbers. Initially USD was depreciated against major peers but currently USD is strengthening. Initial support is seen at 1.1066 and resistance at 1.1220 levels.USD/JPY turns up side and currently trading at 119.85 levels and made high of 119.93 levels. The Japanese yen weakened marginally after Flat USD Nonfarm job data as well as unemployment rate. Ichimoku cloud 119.34-76, kijun 119.67, tenkan 119.50, all accommodating. Today is data free session for JPY. Initial support is seen at 119.05 and 118.49. Resistance is seen at 120.69 levels.GBP/USD took reverse turn and currently trading at 1.5414 levels and made a high of 1.5450. Movement will be range bound today as UK interest rate decision will be main focus today. Technically GBP/USD major resistance is seen around 1.5525 and any break will target 1.5640/1.5745 in short term. Support is seen at 1.5372 levels.USD/CHF touched the low at 0.9303 levels and currently trading Upside at 0.9339 levels. CHF depreciated against USD after solid USD NFP numbers. As today is data free session for Switzerland, expecting less movement. Near term support is seen at 0.9303, 0.9267 levels and resistance is seen at 0.9367, 0.9412 levels.AUD/USD is trading at 0.7890 and made intraday low at 0.7875 levels. The Australian dollar fell as the central bank cut its outlook for inflation and growth, suggesting there may be further room to ease the cash rate from a record low 2%. AUD released NAB business confidence with flat numbers. Initial support is seen at 0.7787and resistance at 0.7976, 0.8010 levels.
The material has been provided by InstaForex Company – www.instaforex.com