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Forex: The AUD Has Been Lifted By China And All Eyes Are On The PMI, UK And EZ GDP


Full markets may have returned and Forex in Asia really was a quiet affair. The US dollar tried to have its own minor correction against the competitors and it even headed into the FOMC after a decision was made. A lot of majors have steadied in narrowing the trading ranges and there has been a lot of pre-fed cautions across a ton of Asian equities.

The Yen was very underpinned by several other Japanese services and the Aussie got a really good boost as a result. This came from the improvement that came from China and Kiwi also benefit from this as well. The NZ jobs also helped to keep the sentiment buoyed. When you look at the commodities space, you’ll find that the relief rally can easily be seen across the board and now gold prices are really back above the $1310 mark. There are crude benchmarks that are going to carry on crawling higher and these are all supported by Iranian concerns.

Japan’s sector has also expanded at the fastest rate in the last six months. This is all down to a pickup in new orders. The index has remained well above the 50 threshold and this is showing a ton of expansion in the 19th month.

The news is crossing the wires through Reuters and the rating agency Fitch has confirmed that Australia has a stable outlook. They have even stated that there is going to be a super strong governance. This is all down to high-income levels and it also has macroeconomic stability as well.

Of course, the Caixin/Markit manufacturing managers index went on to climb to 51.1 in April and this comes after a four-month low. This also went on to better the consensus of 50.9 and the US-based agency has slashed their sovereign debt rating. The White House Trade Advisor has told the steel industry on Tuesday through Reuters and they have also considered quotas and other related restrictions as well.

Asian markets are lacking some very clear direction today and a lot of investors are awaiting the Fed’s own view on various interest rates. There is also a lot of waiting to do with the economy and the inflation rates as well.

The EUR Macro Calendar holds a lot of risks and this is kicking off with the Swiss retail sales. There is also going to be a very strong string of final manufacturing reports and these are all to do with PMI. This is across the Euro area and the main movers in Europe are also going to be the UK construction and even the Eurozone flash estimate. This is said to drop by over 0.4% when compared to 0.6% in the previous month.

When you look at the US opening, the US ADP jobs data will be published and this usually adds a lot of proxy to the payrolls on Friday. This holds a lot of significance for the dollar trade. The EIA weekly stockpiles data will also be eyed along by the ECB policymaker.

Even though these events have happened, the main risk to do with the events remains at the FOMC policy. This decision is going to be announced at 1800 GMT. The FED is expected to stand pat when you look at the interest rates and this statement could show what is going to happen in the upcoming month of June. A statement could help to put a fresh bid underneath the dollar and it could send DXY all the way back to the 93 handle.

The Euro and USD pair closed well below 1.20 yesterday and this is the weakest it has been since the 11th of Jan. This could even expand any losses even further and this is according to a ton of technical studies. Wednesday really does bring the PMI construction index for April and this is expected to go from 47.0 to 50.5. There are plenty of economic indexes that are in the UK and these show that they have softened extensively. This is especially the case when you look at the latter part of April.

There are two key parts for the events in the US and the analytics have offered what appears to be a sneak peek from the monetary policy decision. It has also been suggested that the central bank policy and the ever-widening interest rate comes with a lot of differentials and this shows that traders are actually taking the bull by the horns.


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