Forex trading news and economic data headlines 4 April 2017
News:
- RBA announce ON HOLD - no change to cash rate
- RBA's Lowe: Addressing supply side of housing market is a more durable way of dealing with rising prices
- Moody's expect a continuation of "upward pressure on house prices in Australia in an environment of low interest rates"
- AUD dips despite the expected hold on rates from RBA
- AUDUSD has its eye on support at 0.7540/50 after the RBA
- Further falls for pound pairs as European trading gets underway
- Positve effects from ECB policy clearly prevails over risks says ECB Nowotny
- Zuma says South Africa is committed to fiscal consolidation
- South Africa's Gigaba says government policy aims are unchanged
- Latest poll has Le Pen and Macron tied on 25% first round result
- 1st round French election Opinionway poll Le Pen/Macron/Fillon 26/24/20 vs 25/25/19 prior
- How the US is weaving through the hard and soft economic data
- Option expiries for the 10 am NY cut today 4 April
- Nikkei 225 closes down -0.91% at 18,810.25
Data:
- Eurozone February retail sales mm +0.7% vs +0.5% exp
- March 2017 UK Markit/CIPS construction PMI 52.2 vs 52.4 exp
- Spain March registered jobless down 1.29% mm
The session got off to a lively start but it's been mostly about consolidation since.
Late Asia/early Europe saw the RBA keep rates on hold but the dovish tones and recent soggy data gave AUDUSD sellers the chance to successfully stop hunt through 0.7580-90 and we've since been down to 0.7550. Large option expiry interest in play between 0.7570-85.
While this was going on we had seen an algo-led sell of GBP bang on 04.00GMT (05.00BST) which saw GBPUSD fall to 1.2470 then 1.2460 from 1.2490 after failing to breach 1.2500 again. EURGBP rallied to 0.8555 from 0.8540 while GBPJPY fell to 137.65 from 138.08 . A second wave shortly after saw 1.2420 tested in a rush with EURGBP posting 0.8588 and GBPJPY 137.23.
Softer than expected UK construction PMI made little impact and we saw some short covering from a market oversold intra-day.
EURUSD was mostly caught around 1.0650 between EURGBP demand and EURJPY selling after a move down from 1.0670 but the subsequent EURGBP retreat added to downside pressure and we're stop-hunting through 1.0640 as I type.
USDJPY meanwhile was pinned around 110.50 with yen demand still prevailing but did have one dip to post new session lows of 110.33 before running into buyers again.
USDCHF has rallied as EURUSD fell but general CHF safe-haven demand has seen EURCHF nudge lower to 1.0674.
USDCAD rallied to 1.3450 after holding 1.3380 . CADJPY selling adding to the general USD demand.
Data coming up sees US factory goods and Canadian trade balance reports.
Draghi speaks at 14.30 GMT at an event to launch the new €50 note so not likely to have mon pol in his speech but who knows.
GDT auction underway now with results due around 14.00 GMT
