27 Mar: Hopes of avoiding a trade-war allow stocks to rally strongly. US$, Jpy generally lower. Gold higher

By | March 27, 2018

 

Stocks rallied strongly today on the back or increased hopes that a trade war will be avoided. The rally was helps along by the comments from US Treasury Secretary Steven Mnuchin, who said in a TV interview that the US is having a “very productive conversation” with China. He added that he was “cautiously hopeful we can reach an agreement” to avert the tariffs on USD 50-60b announced last week and noted that both countries agreed on reducing the US trade deficit to China. The US$ is broadly lower, with both the Euro and Sterling making new  minor-trend highs while the Yen is generally weaker all round given the improving risk sentiment. The commodity bloc currencies have also seen a decent rally, particularly the Kiwi, as trade-war fears recede. Elsewhere,  Gold prices rallied to a more than six-week high with the fall in the dollar helping it hold onto its recent gains despite easing concerns about the prospect of U.S.-China trade war. WTI settled a little lower on profit taking, after some choppy trade, due to renewed focus on growing US output amid a rise in domestic oil rigs, but losses were limited as traders anticipated a disruption in Middle East oil supplies amid ongoing tensions in the region.

Tuesday will kick off with the Australian New Home Sales for March and a Speech from the RBA Asst. Director, Kent. The rest of the day is mostly pretty thin, with nothing to come from Asia, just the UK CBI Industrial Trends Survey and the Economic Sentiment Indicator, Industrial Confidence, Services Sentiment, Business Climate from the EU, and then from the US we get the Case Shiller House Price Index – Jan, Richmond Fed Mfg Index (March) and a speech from the Fed’s Bostic. The weekly API weekly Crude Oil Stock Inventory will be released late in the day. Have a good one.

CURRENCIES
EURUSD: 1.2451
Res  1.2460  1.2500  1.2555
Sup  1.2410  1.2385  1.2340
USDJPY: 105.42
Res  105.50  105.75  106.00
Sup  105.25  105.00  104.60
GBPUSD: 1.4230
Res  1.4245  1.4280  1.4300
Sup  1.4200  1.4150  1.4115
USDCHF: 0.9455
Res  0.9470  0.9490  0.9515
Sup  0.9445  0.9425  0.9400
AUDUSD: 0.7748
Res  0.7785  0.7765  0.7805
Sup  0.7715  0.7695  0.7670
NZDUSD: 0.7298
Res  0.7320  0.7335  0.7355
Sup  0.7275  0.7245  0.7230
INDICES / COMMODITIES
S&P: 2659
Res  2670  2690  2710
Sup  2640  2615  2585
DJI: 24184
Res  24220  24415  24600
Sup  24030  23850  23495
ASX SPI: 5811
Res  5820  5835  5855
Sup  5775  5795  5745
XAUUSD: 1353
Res  1360  1365  1370
Sup  1345  1340  1335
XAGUSD: 16.69
Res  16.80  16.95  17.10
Sup  16.60  16.45  16.30
WTI: 65.48
Res  66.00  66.65  67.35
Sup  65.20  64.50  64.10