Market Watch: Asia Recap and Predictions for Europe/US

Market Watch: Asia Recap and Predictions for Europe/US – Currency Trends, Economic Indicators, Market Outlook.

Asia Session Recap

Australia’s retail sales took a disappointing turn in March, declining by 0.4% compared to market expectations of a 0.2% month-on-month gain. February’s growth was also revised lower, exacerbating the poor performance. Various segments, including clothing, footwear, personal accessories, department stores, and household goods, led the decline. The Aussie dollar, trading around 0.6560 before the release, dropped to a low of 0.6530 and is expected to face continued pressure throughout the day.

Europe & US Sessions Preview

Today, the Euro Area will release flash readings for headline and core CPI. Analysts expect Eurozone inflation to moderate lower, potentially adding downward pressure on the Euro, following Germany’s soft CPI figures. Additionally, Canada’s strong economic growth in January and February, particularly in services-producing industries, could boost the Loonie if February’s final GDP figures surpass expectations.

The Dollar Index (DXY) faces uncertainties when releasing the Employment Cost Index and CB Consumer Confidence. Declining employment costs and potentially declining consumer confidence may exert selling pressures on the dollar.

Market Outlook

Gold (XAU): With expectations of relatively unchanged employment cost index readings, gold prices may experience upward pressure due to potential dollar weakening resulting from deteriorating consumer confidence.

Market Watch: Asia Recap and Predictions for Europe/US

Australian Dollar (AUD): Australia’s retail sales disappointment could keep the Aussie dollar under pressure, especially with the RBA maintaining the cash rate target. Continued weak employment figures may further impact the currency.

Kiwi Dollar (NZD): While employment figures show growth, the increasing unemployment rate may pose challenges for the Kiwi. The currency pair ended the Asia session trading around 0.5940.

Japanese Yen (JPY): The yen’s high volatility persists, influenced by speculation about the Bank of Japan’s intervention actions. USD/JPY continues fluctuating, and traders are advised to remain cautious.

Euro (EUR): Expectations of lower Eurozone inflation may weigh on the Euro, trading around 1.0710 during the Asia session.

Swiss Franc (CHF): The Swiss franc faces intense pressures, maintaining USD/CHF around 0.9080-0.9150 levels.

British Pound (GBP): The pound’s overnight high of 1.2570 may face downward pressure as Asian markets open. The Bank of England maintains its Official Bank Rate at 5.25%.

Canadian Dollar (CAD): Strong Canadian economic growth in January and February may bolster the Loonie, depending on final GDP figures. USD/CAD traded around 1.3670 during the Asia session.

Oil: Despite China’s manufacturing expansion and potential bullish catalysts from US inventories, crude oil prices dipped below $83 per barrel, facing overhead pressures.

Overall, markets exhibit varied sentiments. Some currencies face downward pressure amidst economic data releases, while others may see boosts from strong economic indicators. The global economic outlook remains uncertain, with geopolitical factors and central bank policies influencing market trends.

Disclaimer: The information provided in this report is for informational purposes only and does not constitute investment advice.

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