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Oversupply Concerns Haunt Oil Market

Crude oil prices recovered slightly after yesterday selloff taking both benchmarks to lowest levels in two week. The front-month WTI and Brent crude oil contracts stabilized after plunging -2.97% and -3.74%, respectively, on Monday. Concerns over oversupply have put a lid to any price rally. It has been reported...

Risk Aversion Returns After Easter Break

The fall in tech stocks and escalating trade tensions continued to rattle markets after the Easter break. The S&P 500 fell 2.2% on the first trading day of the second quarter, sending the Index back into correction territory (a more than 10% fall from its peak). Although investors are...

RBA Aware of Recent Rise in Yields

The April RBA meeting contained little surprise. Policymakers left the cash rate unchanged at 1.5% and made few changes in the policy statement. The central bank remained upbeat on growth and employment. Yet, it remained wary of the slow growth in wage. Meanwhile, the members took note of the...

Yen Pared Gains as Asian Markets Stabilized, Australian Dollar Steady after RBA

US equities suffered steep selling overnight with DOW losing -1.9%, S&P 500 losing -2.23%. NASDAQ was worst hit as tech rout continued and closed down -2.74%. While Asian equities opened lower and stay in red, selloff is relatively much milder. Nikkei hit as low as 21056.02 but at the...

RBA : US trade policy triggered money market tightening in other countries

There wasn't much new offered by the RBA statement. Nonetheless it noted the near term impacts from the trade policy of the US. It noted the increase in equity market volatility "partly because of concerns about the direction of international trade policy in the United States". And, there has...

Can GBP/JPY Hold This Crucial Support?

Key Highlights The British Pound corrected lower from 150.58 but it found support near 148.80 against the Japanese Yen. There is a significant ascending channel forming with support near 148.80 on the 4-hours chart of GBP/JPY. The pair remains in an uptrend as long as it is above the...

RBA keeps cash rate unchanged at 1.50%. Full statement

RBA stands pat and keeps cash rate unchanged at 1.50%. Full statement below. Statement by Philip Lowe, Governor: At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent. The global economy has strengthened over the past year. A number of advanced economies are growing at...

JPY strong but pared gains, EURUSD failed to break 1.2285 support again

JPY surged broadly as boosted by risk aversion as stocks tumbled. It's now trading as the strongest one for the week. Nonetheless, JPY is paring some gains in Asian session as the contagion to Asian markets is not that serious. For now, the selloff in the US markets seem...

Treasury yields dip on safe haven flow, TNX and TYX extends recent fall

Treasury yields also suffered with the selloff in stocks. 10 year yield lost -0.009 to close at 2.732. 30 year yield lost -0.002 to 2.970. The moves were relatively insignificant. But they are solidifying recent near term reversal. 10 year yield (TNX) formed a short term top at 2.943, ahead...

DOW lost 459 pts, NASDAQ dropped 193 on Trump’s obsession with Bezos

US stocks were under full selloff mode overnight as DOW once tumbled as much as 758 points before paring some losses. It closed down -458.92 pts or -1.90% to 23644.19. S&P 500 lose -58.99 pts or -2.23% to close at 2581.88. NASDAQ suffered most and closed down -193.32 pts,...

Gold Jumps As China Plays Tit-For-Tat With Trump

Gold has posted strong gains in the Monday session. In North American trade, the spot price for an ounce of gold is $1336.94, up 0.89% on the day. In economic news, ISM Manufacturing PMI dropped to 59.3, short of the estimate of 60.1 points. US indicators ended the week on...

Dow break structural support on selloff, EURUSD dives to press 1.2285 again

DOW's selloff accelerates as tech rout intensifies. The index hits as low as 23577 so far and is down nearly -2% at the time of writing. The break of 23708.73 minor support now suggests that recent decline is resuming. We'll likely see a break of 23725.12 soon and DOW...

ISM: Continued Growth as Expectations Move to Actuals

The ISM purchasing managers index came in at 59.3—a moderation, as expected, from February. The indices for production, new orders and employment all dipped. Problems may be brewing in the rise in prices paid. Moderation Toward Actuals Headline ISM moderated toward the actual run of production, orders and employment data released...

EURAUD Edges Towards 2-Year High; Bullish in the Medium-Term

EURAUD is rising for the second straight day and is – at the time of writing – up by 0.2% during Monday’s trading. The Tenkan- and Kijun-sen lines remain positively aligned in support of a bullish bias in the short-term, though they’re both more or less flat at the moment....

U.S Factory Sector Cools in March; Inflation Pressures Rise

Data stateside this morning showed that U.S activity in the factory sector cooled last month, though a measure of prices for commodities rose quickly in a sign of rising inflation. The ISM said its closely watched index of manufacturing activity fell to 59.3 in March from 60.8 in February. The...

ISM manufacturing dropped to 59.3, but price surged as Trump’s tariffs triggered panic buying

ISM manufacturing index rose dropped to 59.3 in March, down from 60.8 and was slightly below expectation of 60.0. Prices paid component surged to 78.1, up from 74.2, beat expectation of 72.5. Employment component dropped to 57.3, down from 59.7. Overall, despite slight deterioration in the headline index and employment...

RBA Set to Remain on Hold as Trade Uncertainties Loom

The Reserve Bank of Australia (RBA) will announce its rate decision on Tuesday, at 0430 GMT. With the Bank widely anticipated to take no action, the focus will probably turn to the statement accompanying the decision for fresh policy signals. Considering recent developments around global trade, the RBA has...

Traders Were Bullish on Petroleum but Turned Bearish on Natural Gas

CFTC Commitments of Traders With the exception of natural gas, speculators were bullish over the energy complex in the week ended March 27. Net LENGTH for crude oil futures jumped +12 062 contracts from a week ago to 715 7708. NET LENGTH of heating oil gained +1 948 contracts to...

Hong Kong Dollar Weakest in Three Decades Due to Ample Liquidity

USDHKD has continued flirting slightly below 7.85, the weak end of its trading band. Since late-February, the market has been speculating about what and when the Hong Kong Monetary authority HKMA, the de facto central bank of Hong Kong, would do to maintain the peg. We judge that the...

ISM manufacturing to bring some life into dull trading

After half day of dull trading, GBP is the strongest one so far, followed by CAD. JPY, USD and CHF are like brothers again trading as the weakest ones together. But it should be noted that activity is very low due to holidays. The top moving one GBPNZD is just...

Dollar Inches Down As Trade Woes Linger, US Data & RBA Decision Eyed

Here are the latest developments in global markets: FOREX: The US dollar held steady versus the Japanese yen today (+0.04%), taking a breather after last week’s rally. The US dollar index fell by 0.28% though, currently hovering just below the 90.00 handle. Traders are awaiting the US labor market data...

China And U.S Tit-For-Tat Tariffs Start

Monday April 2: Five things the markets are talking about Trading remains light, with major currencies little changed, amid the last day of the Easter holidays. Note: There is a bank holiday in most of Europe today (Sw., Ger., Fr., It. and the U.K). This shortened trading week features inflation and unemployment...

Gold Extends Gains After Rebound From 1321, Immediate Resistance At 20-SMA

Gold has been outperforming today following the rebound from the 1321 support level that hit last Thursday. Despite the latest pullback though, the precious metal has not posted a lower bottom below 1321, which makes one hesitant to trust further declines for now. Looking at momentum oscillators in the 4-hour...

Equities Soften As China Retaliates, US ISM Manufacturing PMI Pending

Here are the latest developments in global markets: FOREX: The dollar index was nearly 0.2% lower on Monday to start the new quarter, amid continued concerns over a US-China trade dispute escalating following the latest tariffs by China, due to take effect today. The British pound was on the front...

EURUSD Holds Within Sideways Channel In Short-Term, Ascending Move In Medium-Term

EURUSD remains under pressure and has been trading within a sideways channel since January 12 with upper boundary the 1.2540 resistance level and lower boundary the 1.2160 support level. During Friday’s trading session, the price snapped a three-day losing streak and posted a bullish candle. Having a look at the...

Forex Markets Stay Quiet on Holiday Mood. RBA, ISM and NFP ahead

The forex markets are rather quiet today as most countries are still on holiday. Yen is trading generally lower but loss is limited so far. Japan Tankan survey posted some disappointing data but was shrugged off. Australian Dollar is also a touch weaker. Mixed data from China and the...

RBA to stand pat, AUD to stay weak

RBA is widely expected to keep the cash rate unchanged at 1.50% tomorrow. Economists have been pushing back their expectation on the timing of an RBA hike after recent sluggish wage growth and inflation data. Late last year, there were speculations that RBA could hike twice by the end...

Attention Turns Back To Data This Week

Asian equities kicked off Q2 on a positive note, taking their cue from Wall Street's rally on Thursday. The gains came despite China imposing retaliatory tariffs on U.S. imports and Manufacturing PMI data falling short of economists' forecasts. So far China's response has only been on the aluminum and steel...

China starts tariffs on 128 US products, in response to 232 steel tariffs

China formally starts the tariffs on 7 types, 128 products from the US today, according to a statement (link in simplified Chinese) by the Ministry of Finance. This is part of the packaged announced last month which targets up to USD 3b in imports. And it's a counter measure...

EUR/USD Holding Crucial Support Near 1.2280

Key Highlights The Euro traded lower recently towards an important support at 1.2280 against the US Dollar. There is a major bullish trend line forming with support at 1.2285 on the 4-hours chart of EUR/USD. The pair must hold the stated 1.2280 support to start a fresh upward wave. ...