Forex: Aussie, NZ Dollars Sink as Asian Stocks Follow Wall Street Lower
Talking Points:
- Aussie, NZ Dollars Sink as on Risk Aversion as Asian Stocks Follow Wall St. Lower
- Euro May Correct Lower if March’s Final German CPI Print is Revised Downward
- US Dollar May Find Fuel for a Modest Bounce in PPI, UofM Confidence Figures
The Australian and New Zealand Dollars underperformed in overnight trade, sliding as much as 0.4 and 0.6 percent respectively against their major currency counterparts. The sentiment-linked currencies tracked a selloff across Asian stock exchanges downward. The MSCI Asia Pacific regional benchmark equity index slid 1 percent in a move that seemed to follow on from blood-letting on Wall Street earlier in the day.
The final revision of March’s German CPI reading headlines an otherwise quiet European economic calendar. Initial estimates putting the benchmark year-on-year inflation rate at 1 percent – the lowest since June 2010 – are expected to be confirmed. While deepening disinflation is a familiar narrative for Germany and the Eurozone as a whole at this point, a downward revision may still have some market-moving potential for the Euro if profit-taking is triggered after four consecutive days of gains.
Later in the day, the spotlight shifts to US PPI data and University of Michigan Consumer Confidence gauge. Wholesale inflation is expected to narrowly accelerate in March after hitting a nine-month low in February. The sentiment index is likewise seen posting a mild improvement in April after registered at the weakest level in since November in the prior month. The US Dollar is on pace to produce its worst selloff in six months after five consecutive days of losses. Against such a backdrop, it is feasible that even a tepidly upbeat round of economic data may spark a corrective bounce into the week-end. Securing lasting upward follow-though is another matter altogether however.
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Asia Session
|
GMT |
CCY |
EVENT |
ACT |
EXP |
PREV |
|
21:00 |
NZD |
REINZ House Price Index (MoM) (MAR) |
3.4% |
- |
2.1% |
|
21:00 |
NZD |
REINZ House Sales (YoY) (MAR) |
-10.0% |
- |
-7.6% |
|
22:45 |
NZD |
Food Prices (MoM) (MAR) |
-0.3% |
- |
-1.0% |
|
23:50 |
JPY |
BOJ Mar 10-11 Meeting Minutes |
- |
- |
- |
|
23:50 |
JPY |
Japan Money Stock M2 (YoY) (MAR) |
3.5% |
4.0% |
4.0% |
|
23:50 |
JPY |
Japan Money Stock M3 (YoY) (MAR) |
2.9% |
3.2% |
3.2% |
|
23:50 |
JPY |
Domestic CGPI (MoM) (MAR) |
0.0% |
0.1% |
-0.1% |
|
23:50 |
JPY |
Domestic CGPI (YoY) (MAR) |
1.7% |
1.8% |
1.8% |
|
1:30 |
CNY |
CPI (YoY) (MAR) |
2.4% |
2.4% |
2.0% |
|
1:30 |
CNY |
PPI (YoY) (MAR) |
-2.3% |
-2.2% |
-2.0% |
|
3:00 |
NZD |
Non Resident Bond Holdings (MAR) |
62.8% |
- |
61.9% |
European Session
|
GMT |
CCY |
EVENT |
EXP |
PREV |
IMPACT |
|
6:00 |
EUR |
German CPI (MoM) (MAR F) |
0.3% |
0.5% |
Medium |
|
6:00 |
EUR |
German CPI (YoY) (MAR F) |
1.0% |
1.2% |
Medium |
|
6:00 |
EUR |
German CPI - EU Harmonised (MoM) (MAR F) |
0.3% |
0.5% |
Low |
|
6:00 |
EUR |
German CPI - EU Harmonised (YoY) (MAR F) |
0.9% |
1.0% |
Low |
|
6:45 |
EUR |
French Current Account (€) (FEB) |
4.5B |
Low |
Critical Levels
|
CCY |
Supp 3 |
Supp 2 |
Supp 1 |
Pivot Point |
Res 1 |
Res 2 |
Res 3 |
|
EUR/USD |
1.3748 |
1.3811 |
1.3849 |
1.3874 |
1.3912 |
1.3937 |
1.4000 |
|
GBP/USD |
1.6654 |
1.6720 |
1.6753 |
1.6786 |
1.6819 |
1.6852 |
1.6918 |
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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