Forex Today: Antipodeans boosted by trade hopes, China profits, Eurozone data eyed
Amid broad-based US dollar pullback and holiday-thinned light trading, the Antipodeans benefited the most, mainly boosted by stronger Chinese industrial profits data and renewed US-China trade optimism. The AUD/USD pair regained poise and tested the recent 0.7060 resistance while the Kiwi jumped back towards the 0.67 handle. Meanwhile, the USD/JPY pair held steady near 111.60 levels amid minimal volatility, as the Japanese traders are away on a week-long holiday break. Further, negative Treasury yields and mixed Asian equities also kept the bulls unmotivated.
Amongst the European currencies, the Cable advanced to near 1.2940 levels amid hopes of a breakthrough heading into the UK cross-party Brexit talks. The Euro remained better bid against its American peer after Sunday’s Spanish general elections vote count turned in favor of the Socialist.
On the commodities front, both crude benchmarks kept losses following the US President Trump’s jawboning while gold futures on Comex headed back towards the 1300 mark amid weak details of the US Q1 GDP report.
Main Topics in Asia
Weekend Press: A big week of insights ahead
China's industrial profits rebound from four months of contraction
WTI struggles near $62.80 amid mixed data/news
S. Korean FinMin Dong-yeon: Will intervene if forex volatility gets worse
Senior WH Official: US - China talks to resume with significant issues unresolved - Bloomberg
US Treasury Secretary Mnuchin: Trade talks in final laps - NY Times
Spanish Socialist Leader Sanchez: “We will form a pro-European government”
Australia's opposition Labor lead over government slips ahead of election - Newspoll
China’s 2019 GDP now seen at 6.3% vs. 6.2% previous – Bloomberg Survey
Bets against Euro hit highest level since December 2016
Key Focus Ahead
With a quiet start to a big week ahead, markets now look forward to the Bank of England (BOE) Governor Mark Carney’s speech due at 0810 GMT for a fresh take on the interest rates outlook. Meanwhile, a string of Eurozone consumer and business confidence numbers will be closely eyed at 0900 GMT for fresh EUR trades.
Later in the NA session, the US personal spending, core PCE price index and a few other minority reports will be published at 1230 GMT. The main focus this week remains on the FOMC monetary policy decision and the US payrolls data for the next direction on the US dollar.
EUR/USD: Focus on Spanish political developments and US data
Spanish political uncertainty could cap upside in the EUR. A below-forecast March US Personal Income and Spending will likely yield broad-based USD sell-off.
GBP/USD: 1.2965/70 holds the spotlight, all eyes on Brexit cross-party talks
Lack of market support for the US Dollar (USD) continues to highlight 100-day and 200-day SMA confluence ahead of the cross-party Brexit talks that resume in the UK.
EUR/USD Forecast: would data and the Fed send it to 1.1000?
The upcoming week will be a recharged one, in terms of macroeconomic releases, with a Federal Reserve monetary policy meeting outstanding next Wednesday.
Gold Technical Analysis: Bulls looking to $1,303 and trendline resistance
A hold above the taking 20-D EMA exposes the 50-D EMA at 1292 and the spike will have shaken out some speculative shorts allowing bulls to focus on a target of 1303 (23.6% Fibo) with a look in at the trend line resistance.