7 Mar: N Korean nuclear offer sends the US$ lower, commodity bloc higher. CB speakers the main focus today.

By | March 7, 2018

 

Tuesday has been a busy session although there was little going on until the news headline that N Korea is open to talks with the US on nuclear weapons, which created an immediate rise in risk-sentiment and saw the commodity currencies perform particularly well. At the same time there was some immediate selling of the Yen, on the back of the need to fund increased risk positioning.  In other headlines, the US$ suffered on all fronts amid the ongoing concerns over the prospect of a trade war, while speculation that Donald Trump’s economic adviser Gary Cohn could step down if Trump decides to proceed with tariffs also kept the pressure on the downside. The lower dollar has allowed the metals to have a strong session (Gold +1.2%, Silver +2.2%), while WTI and the stock markets have been choppy but pretty much unchanged on the day.

Wednesday will be another busy one for the Aud$, with a speech from the RBA’s Lowe coming ahead of the release of the Q4 GDP and the February AIG Performance of Construction Index. Japan will see the Leading Economic Index and Coincident Index both for January. Early Asia will also be watching the Fed’s Brainard and Kaplan, who will both be speaking, so it could be quite a busy morning. The EU Q4 GDP will be the European focus, while from the US we get more Fed speakers (Bostic/Dudley), the January Trade Balance and also the ADP Jobs data for Feb (exp +195k). Have a good day.

CURRENCIES
EURUSD: 1.2402
Res  1.2420  1.2435  1.2460
Sup  1.2385  1.2360  1.2330
USDJPY: 106.21
Res  106.30  106.45  106.75
Sup  106.00  105.85  105.70
GBPUSD: 1.3886
Res  1.3905  1.3930  1.3960
Sup  1.3870  1.3840  1.3815
USDCHF: 0.9406
Res  0.9415  0.9425  0.9440
Sup  0.9390  0.9370  0.9350
AUDUSD: 0.7817
Res  0.7840  0.7860  0.7890
Sup  0.7800  0.7785  0.7770
NZDUSD: 0.7293
Res  0.7310  0.7340  0.7365
Sup  0.7280  0.7255  0.7230
INDICES / COMMODITIES
S&P: 2726
Res  2730  2740  2750
Sup  2720  2710  2700
DJI: 24872
Res  24930  25000  25100
Sup  24800  24700  24620
ASX SPI: 5955
Res  5965  5980  6000
Sup  5940  5925  5910
XAUUSD: 1335
Res  1340  1345  1350
Sup  1330  1325  1320
XAGUSD: 16.76
Res  16.85  17.00  17.15
Sup  16.65  16.50  16.35
WTI: 62.50
Res  63.05  63.50  64.20
Sup  62.05  61.50  61.10