17 April: US$ soft, stocks higher as Middle-East tensions ease. China GDP and RS ahead. EU ZEW UK jobs data later.

By | April 17, 2018

 

The US$ is generally soft at the end of Monday trade due to speculation that the US-led missile strike on Syria will not escalate beyond the weekend strike. This enabled a move back into stocks, also underpinned by investor focus on company earnings, allowing the DJI and the S+P to close up by around 0.9%, and spurring investors to reduce safe-haven holdings of the dollar. Cable in particular had a good day, in closing in on the 2018/post-Brexit high as traders focus shifted to upcoming UK data that could see a May rate hike, taking the focus away from Britain’s military intervention in Syria.

US stocks closed higher, with the biggest boosts from the technology and healthcare sectors as investors turned their focus to the upcoming earnings season.

The metals were fairly rangebound, while WTI fell by 1.5% as the Middle East tension appeared to subside somewhat.

Tuesday will get off to a busy start with the release of the RBA Minutes of the last meeting and will be closely followed by the February Retail Sales (exp 9.9%), Industrial Production (exp 6.2%), the Q1 GDP (exp 1.5%qq, 6.5%yy) and the NBS Press Conference. The Japanese Capacity Utilisation and Industrial Production for Feb are also due. The focus in Europe will be on the German/EU ZEW Economic Sentiment Survey and the UK Unemployment data (exp Claimant Count Change; +1.1K), while from the US we get the March Building Permits (exp 1.32 mio mm, +11.9%), Housing Starts (exp 1.27 mio mm, -6.7%), Capacity Utilisation (exp 77.9%) and Industrial Production (exp 0.3%). Fed speakers will include Williams, Quarle and Evans. Oil traders should note the API Weekly Crude Oil Stock Inventory while Kiwi traders will watch for the Global Dairy Trade Index around midday, London. Have a good day.

CURRENCIES
EURUSD: 1.2381
Res  1.2395  1.2420  1.2445
Sup  1.2350  1.2325  1.2300
USDJPY: 107.11
Res  107.60  107.30  107.75
Sup  107.00  106.80  106.60
GBPUSD: 1.4338
Res  1.4345  1.4385  1.4425
Sup  1.4310  1.4275  1.4225
USDCHF: 0.9597
Res  0.9615  0.9630  0.9650
Sup  0.9580  0.9560  0.9535
AUDUSD: 0.7783
Res  0.7785  0.7800  0.7810
Sup  0.7770  0.7750  0.7735
NZDUSD: 0.7364
Res  0.7370  0.7395  0.7410
Sup  0.7345  0.7330  0.7310
INDICES / COMMODITIES
S&P: 2680
Res  2690  2700  2710
Sup  2670  2660  2645
DJI: 24561
Res  24625  24800  25000
Sup  24410  24210  24060
ASX SPI: 5821
Res  5830  5850  5865
Sup  5810  5790  5775
XAUUSD: 1347
Res  1350  1355  1365
Sup  1340  1335  1325
XAGUSD: 16.68
Res  16.75  16.85  17.00
Sup  16.50  16.35  16.20
WTI: 66.44
Res  67.75  69.65  71.70
Sup  66.05  65.15  64.20