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10 Apr 2015
China CPI – key driver in Asia, UK Industrial Production eyed
FXStreet (Mumbai) - The entire Antipodean complex remained on top in Asia, albeit with limited upside as Chinese inflation figures failed to impress. While USD/JPY clinged to 120.50 – psychological barrier almost through this session consolidating US macro data-led gains.
Key headlines in Asia
Chinese inflation a touch stronger-than-expected
AUD/USD: Bears jump in on Chinese data, testing 0.7700
New Zealand budget deficit eight months to February smaller-than-expected
Hang Seng outperforms yet again, Nikkei breaks above 20k
Dominating themes in Asia - centered on JPY, AUD, NZD
Chinese March CPI print was the major driver in Asia, as the gains in both AUD/USD and NZD/USD were capped following slightly better than expected Chinese inflation figures, which suggests that PBOC may not be in a hurry to roll out further easing measure in the near term.
However, the antipodeans seems to end the week on a higher note supported by a recovery in commodity prices. Meanwhile, the greenback was trading slightly lower against major competitors after the yesterday’s rally. USD/JPY remained in a narrow range awaiting fresh incentives from the Europe session.
While Asian equities rallied in Asian trading, with Hang Seng stealing the lime light for third straight session and Nikkei surpassing 20000 levels for the first time since April 2000.
Heading into Europe - centered on EUR, GBP
In the session ahead, traders are expected to closely eye UK industrial and manufacturing output data due to be published at 8.30GMT amid a data thin EUR calendar.
Markets expect a 0.3% increase in industrial output and growth of 1.3% in manufacturing output in February.
Previously, UK’s industrial output fell by a monthly 0.1% in January, compared with a forecast for a 0.2% increase. While manufacturing output slid 0.5% in January from December.
The UK also sees the publication of NIESR's gross domestic product estimate for March.
For the day ahead, Valeria Bednarik, Chief Analyst – FXStreet notes, EUR/USD may test yearly lows at 1.0461, “In the 4 hours chart the technical stance is also bearish, with the RSI heading lower around 25 and the Momentum indicator well below its mid-line, albeit showing no directional strength."
"The immediate support comes at the 1.0610 level, with a break below it exposing the pair to a retest of this year low at 1.0461. “
For GBP/USD, immediate support is seen at 1.4634 (March 18 Low), “The pair maintains a strong bearish bias in the short term, with the 1 hour chart showing that the 20 SMA turned sharply lower above the current level, whilst the technical indicators continue to head lower, despite in oversold territory. In the 4 hours chart the 20 SMA slowly gains bearish slope in the 1.4840 region, whilst the technical indicators head strongly lower below their mid-lines, supporting additional declines.”
“The 1.4634 level, March 18th and this year low, is now the immediate support level to follow, as a break below it should trigger stops and fuel the slide towards the 1.4500 region. “
Key headlines in Asia
Chinese inflation a touch stronger-than-expected
AUD/USD: Bears jump in on Chinese data, testing 0.7700
New Zealand budget deficit eight months to February smaller-than-expected
Hang Seng outperforms yet again, Nikkei breaks above 20k
Dominating themes in Asia - centered on JPY, AUD, NZD
Chinese March CPI print was the major driver in Asia, as the gains in both AUD/USD and NZD/USD were capped following slightly better than expected Chinese inflation figures, which suggests that PBOC may not be in a hurry to roll out further easing measure in the near term.
However, the antipodeans seems to end the week on a higher note supported by a recovery in commodity prices. Meanwhile, the greenback was trading slightly lower against major competitors after the yesterday’s rally. USD/JPY remained in a narrow range awaiting fresh incentives from the Europe session.
While Asian equities rallied in Asian trading, with Hang Seng stealing the lime light for third straight session and Nikkei surpassing 20000 levels for the first time since April 2000.
Heading into Europe - centered on EUR, GBP
In the session ahead, traders are expected to closely eye UK industrial and manufacturing output data due to be published at 8.30GMT amid a data thin EUR calendar.
Markets expect a 0.3% increase in industrial output and growth of 1.3% in manufacturing output in February.
Previously, UK’s industrial output fell by a monthly 0.1% in January, compared with a forecast for a 0.2% increase. While manufacturing output slid 0.5% in January from December.
The UK also sees the publication of NIESR's gross domestic product estimate for March.
For the day ahead, Valeria Bednarik, Chief Analyst – FXStreet notes, EUR/USD may test yearly lows at 1.0461, “In the 4 hours chart the technical stance is also bearish, with the RSI heading lower around 25 and the Momentum indicator well below its mid-line, albeit showing no directional strength."
"The immediate support comes at the 1.0610 level, with a break below it exposing the pair to a retest of this year low at 1.0461. “
For GBP/USD, immediate support is seen at 1.4634 (March 18 Low), “The pair maintains a strong bearish bias in the short term, with the 1 hour chart showing that the 20 SMA turned sharply lower above the current level, whilst the technical indicators continue to head lower, despite in oversold territory. In the 4 hours chart the 20 SMA slowly gains bearish slope in the 1.4840 region, whilst the technical indicators head strongly lower below their mid-lines, supporting additional declines.”
“The 1.4634 level, March 18th and this year low, is now the immediate support level to follow, as a break below it should trigger stops and fuel the slide towards the 1.4500 region. “