Asia Roundup: Aussie at 3-week peak ahead of OPEC+ meeting, dollar consolidates against yen on hopes pandemic is approaching peak, investors eye ECB meeting minutes – Thursday, April 9th, 2020

Market Roundup

  • Crude oil eases ahead of OPEC+ meeting
  • Gold rises slightly on weak dollar

Economic Data Ahead

  • No Major Economic Releases

Key Events Ahead

  • (0730 ET/1130 GMT) ECB Monetary Policy Meeting Accounts

FX Beat

DXY: The dollar index eased after New York State on Wednesday reported the most coronavirus cases in the world, overtaking Spain, according to a Reuters tally. The greenback against a basket of currencies traded 0.1 percent down at 100.07, having touched a high of 100.93 on Monday, its highest since Mar. 26.

EUR/USD: The euro eased after European Union finance ministers failed in all-night talks to agree on more economic support for their coronavirus-stricken economies. The European currency traded down at 1.0853, having touched a low of 1.0768 on Monday, its lowest since March 25. Investors’ attention will remain on the ECB monetary policy meeting accounts, ahead of the U.S. producer price index, unemployment benefit claims, wholesale inventories, and Michigan prelim consumer sentiment index. Immediate resistance is located at 1.0900, a break above targets 1.0939 (10-DMA). On the downside, support is seen at 1.0840, a break below could drag it below 1.0820.

USD/JPY: The dollar consolidated within narrow ranges, as investors awaited the U.S. initial jobless claims data due later in the day, which is expected to come in at 5.25 million after a total of nearly 10 million claims over the past two weeks. The major was trading 0.1 percent up at 108.95, having hit a high of 109.38 on Monday, its highest since Mar. 27. Investors’ will continue to track the broad-based market sentiment, ahead of the Fed minutes. Immediate resistance is located at 109.22, a break above targets 109.58. On the downside, support is seen at 108.40 (21-DMA), a break below could take it near at 108.25.

GBP/USD: Sterling surged, extending gains for the fourth straight session on news that British Prime Minister Boris Johnson was in clinically stable condition after being rushed into intensive care. The major traded up at 1.2381, having hit a low of 1.2163 on Tuesday, it’s lowest since March 27. Investors’ attention will remain on the geopolitical developments ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.2445, a break above could take it near 1.2485. On the downside, support is seen at 1.2318 (5-DMA), a break below targets 1.2205. Against the euro, the pound was trading 0.1 percent down at 87.68 pence, having hit a high of 87.39 on Friday, it’s highest since Mar. 11.

AUD/USD: The Australian dollar rallied to a 3-week peak, supported by hopes that major oil-producing countries could agree to cut output at a video conference on Thursday. The Aussie trades 0.05 percent up at 0.6224, having hit a high of 0.6250 earlier, it’s highest since Mar. 16. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate resistance is located at 0.6302, a break above could take it near 0.6325. On the downside, support is seen at 0.6168, a break below targets 0.6106.

Equities Recap

Asian shares surged on hopes the COVID-19 pandemic is nearing a peak and that governments would roll out more stimulus measures.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.6 percent.

Tokyo’s Nikkei eased 0.05 percent to 19,345.77 points, Australia’s S&P/ASX 200 index gained 3.5 percent to 5,387.30 points and South Korea’s KOSPI surged 1.6 percent to 1,836.21 points.

Shanghai composite index rose 0.4 percent to 2,825.90 points, while CSI 300 index traded 0.3 percent up at 3,792.81 points

Hong Kong’s Hang Seng traded 1.3 percent higher at 24,285.43 points. Taiwan shares shed 0.2 percent to 10,119.43 points.

Commodities Recap

Crude oil prices eased after U.S. Energy Information Administration data showed crude stocks rose by 15.2 million barrels, their biggest ever 1-week rise. However, hopes that OPEC and its allies will strike a production cut agreement limited losses. International benchmark Brent crude was trading 1.6 percent lower at $33.14 per barrel by 0520 GMT, having hit a high of $36.11 last week, its highest since March 12. U.S. West Texas Intermediate was trading 1.2 percent down at $25.78 a barrel, after rising as high as $29.11 on Friday, its highest since Mar. 17.

Gold prices nudged up ahead of a U.S. weekly jobless claims report, although hopes that the new coronavirus pandemic is nearing a peak limited the metal’s upside. Spot gold rose 0.1 percent to $1,647.80 per ounce by 0528 GMT, having touched a high of $1675.60 on Tuesday, its highest since Mar. 10. U.S. gold futures eased 0.1 percent to $1,682.70.

Treasuries Recap

On Wednesday, the two-year U.S. Treasury yield was at 0.2619 percent, down 2 basis points, while the yield on the benchmark U.S. 10-year note was up 4 basis points at 0.7738 percent.

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