Posted at 04 April 2023 / Categories Market Roundups
Market Roundup
•Canada Feb Building Permits (MoM) 8.6%, 2.0% forecast,-4.0% previous
•US Redbook (YoY) 3.7%, 2.8% previous
•US Feb Factory orders ex transportation (MoM) -0.3%, 0.8% forecast,1.2% previous
•US Feb Durables Excluding Transport (MoM) -0.1%, 0.7% previous
•US Feb Durables Excluding Defense (MoM) -0.5%, -0.5% previous
•US Feb Factory Orders (MoM ) -0.7%, -0.5% forecast, -1.6% previous
•US Feb JOLTs Job Openings 9.931M, 10.400M forecast,10.824M previous
•Global Dairy Trade Price Index -4.7% ,-2.6% previous
Looking Ahead Economic Data(GMT)
•23:00 Australia Mar AIG Manufacturing Index -4.0 forecast,-6.4 previous
•23:00 Australia Mar AIG Construction Index -8.0 forecast,-5.0 previous
•23:00 Australia Services PMI 48.2 forecast,50.7 previous
•02:00 New Zealand RBNZ Interest Rate Decision 5.00% forecast,4.75% previous
Looking Ahead Events And Other Releases (GMT)
•02:30 Australia RBA Governor Lowe Speaks
•02:00 New Zealand RBNZ Rate Statement
Currency Summaries
EUR/USD: The euro rose against dollar on Tuesday after U.S. job openings fell to a nearly two-year low in February, indicating that the labor market is finally cooling and could allow the Federal Reserve to loosen its grip on monetary policy. Job openings, a measure of labor demand, decreased 632,000 to 9.9 million on the last day of February, the lowest level since May 2021, the Labor Department said in its monthly Job Openings and Labor Turnover Survey, or JOLTS report. Job openings were expected to decline to 10.4 million from 10.82 million in January, a poll of economists showed. The euro reached $1.0973, the most in two months. It was last up 0.4% at $1.0951 Immediate resistance can be seen at 1.0955 (23.6%fib), an upside break can trigger rise towards 1.0972(higher BB).On the downside, immediate support is seen at 1.0846(5DMA), a break below could take the pair towards 1.0734(38.2%fib).
GBP/USD: The British pound rose to a new 10-month high against the dollar on Tuesday as the U.S. currency continued to suffer from market bets that the end of the U.S. rate-hiking cycle is near. The latest data to support a slowing in rate increases was from a Monday survey by the Institute for Supply Management (ISM) that showed that manufacturing activity fell to the lowest in nearly three years in March as new orders continued to contract, with all sub-components of its manufacturing PMI below the 50 threshold for the first time since 2009. Immediate resistance can be seen at 1.2514(23.6%fib), an upside break can trigger rise towards 1.2540(Higher BB).On the downside, immediate support is seen at 1.2403(Daily low), a break below could take the pair towards 1.2339(5DMA).
USD/CAD: The Canadian dollar fell against its US counterpart on Tuesday, falling from a previous seven-week high as as investors grew cautious ahead of key technical resistance level for the currency. Gains for the currency in recent days follow a calming in financial markets as stress in the global banking sector showed signs of easing. Canada's trade balance for February, due to be reported on Wednesday, and the March employment report, set for release on Thursday, could offer further clues on the state of the domestic economy. The Canadian dollar was trading 0.1% lower at 1.3450 to the greenback, after earlier touching its strongest intraday level since Feb. 16 at 1.3407.Immediate resistance can be seen at 1.3454(38.2%fib), an upside break can trigger rise towards 1.35520(23.6%fib).On the downside, immediate support is seen at 1.3401(50%fib), a break below could take the pair towards 1.3352 (61.8%fib).
USD/JPY: The dollar declined against the yen on Tuesday as another round of weak economic data reinforced investor bets that the Federal Reserve is nearly done with its tightening cycle. Data showing U.S. job openings in February dropping to the lowest in nearly two years, and the continued decline in factory orders, undermined the dollar as the numbers indicated that rate hikes may be nearing an end.Job openings, a measure of labor demand, decreased 632,000 to 9.9 million in February, the lowest since May 2021. U.S. factory orders also declined for a second straight month, down 0.7% in February after falling 2.1% in January. The dollar index dropped to a two-month low of 101.45 and was last down 0.4% at 101.58.Strong resistance can be seen at 132.52 (20DMA), an upside break can trigger rise towards 133.32 (Psychological level).On the downside, immediate support is seen at 1310.97(23.6%fib), a break below could take the pair towards 129.70(Lower BB).
Equities Recap
European stocks fell on Tuesday as energy stocks fell on worries about oil demand following weak economic data in the United States, while eurozone producer prices fell for a fifth month in February.
UK's benchmark FTSE 100 closed down by 0.50 percent, Germany's Dax ended up by 0.14 percent, France’s CAC finished the day down by 0.01 percent.
Wall Street closed lower on Tuesday after signs of an economic slowdown fueled fears that the Federal Reserve's decade-long campaign to contain inflation could result in a sharp slowdown.
Dow Jones closed down by 0.59 percent, S&P 500 closed down by 0.58 percent, Nasdaq settled down by 0.52 % percent.
Treasuries Recap
Treasury yields slid on Tuesday after U.S. job openings dropped to the lowest level in nearly two years in February, indicating a cooling of the labor market that can help slow inflation and allow the Federal Reserve to loosen monetary policy.
The yield on two-year Treasuries, which typically moves in step with interest rate expectations, fell 12.2 basis points at 3.858%, while the benchmark 10-year note's yield slid 4.5 basis points to 3.387%.
Commodities Recap
Gold extended gains on Tuesday and crossed the key $2,000 level as the dollar and yields fell, while weaker U.S. economic data emboldened bets for slower rate hikes despite mounting concerns over oil-led inflation.
Spot gold was up 1.7% at $2,017.92 per ounce by 2:00 p.m. EDT (1800 GMT), after reaching its highest since March 9 last year at $2,024.89 earlier. U.S. gold futures settled 1.9% higher at $2,038.20.
Oil prices were little changed in volatile trading on Tuesday, with investors weighing planned OPEC+ production cuts ahead of weak US and China economic data that could suggested oil demand is cooling.
Brent crude futures settled 1 cent higher at $84.94 a barrel, while U.S. West Texas Intermediate (WTI) crude futures closed up 29 cents, or 0.4%, at $80.71 a barrel.