Asia index:
- Australia’s ASX 200 index fell -26.6 points (-0.36%) and is now trading at 7,335.60.
- Japan’s Nikkei 225 Index fell -25.49 points (-0.09%) and is currently trading at 28,632.08.
- Hong Kong’s Hang Seng Index fell -156.29 points (-0.77%) and is now trading at 20,240.68.
- China’s A50 index fell -44.31 points (-0.34%) and is now trading at 13,181.63.
UK and Europe:
- UK FTSE 100 futures are currently up 4.5 points (0.06%) and the physical market is now estimated to open at 7,907.11.
- Euro STOXX 50 futures are currently up 7 points (0.16%) and the physical market is now estimated to open at 4,391.86.
- German DAX futures are now down -1 point (-0.01%) and the spot market is now estimated to open at 15,794.97
US Futures:
- DJI futures are currently down -11 points (-0.03%).
- S&P 500 futures are currently up 1.75 points (0.04%).
- Nasdaq 100 futures are currently up 16.75 points (0.13%).
- UK consumer confidence soars to most pessimistic level since Ukraine crisis
- Joe Biden is weighing whether to formally announce his re-election campaign on Tuesday.
- G7 members are reportedly considering a near-total ban on exports to Russia.
- Japan’s inflation rate continues to test the Bank of Japan’s ultra-dovish stance, with annual inflation remaining above 3%, leading to a stronger yen.
- Australia’s flash PMI beats expectations, services and headline PMI climb to 10-year highs, manufacturing contraction slows
- Japan’s manufacturing PMI contracted at its slowest pace in six months. Flash PMIs in Asia outperformed expectations, which could set the tone for today’s European and US data.
- “Sources” claim the BOJ is open to fine-tuning its Yield Curve Control (YCC) later this year. This makes it more likely that the BOJ won’t budge and change policy next Friday, but they may be laying the groundwork for change.
- A combination of high JP inflation and a slight risk-off tone caused commodity currencies to fall overnight, and money flowed into the yen.
- NZD/JPY reached 2-week low overnight in line with bearish bias. USD/JPY has reached 4-day lows but now he is above his 200-day EMA.
It’s the last trading day before the Fed’s backout period, and Fed members won’t be commenting on monetary policy ahead of the next FOMC meeting. Overall, this week’s comments are predictably hawkish, and the economic data bears that out.
But concerns that the U.S. government could reach its debt ceiling in early June (some even suggesting May) due to a shortage of tax returns filed have weighed on sentiment, with today’s The yen has also strengthened following reports that the Bank of Japan may consider tweaking the YCC band later in the year, and inflation is set to rise next week. Up 3% year-on-year ahead of the Bank of Japan meeting.
See what traders are looking for next week. The Week Ahead: AU Inflation, Bank of Japan Meeting, US PCE and GDP on-tap
AUD/JPY daily chart:
The three-wave rally stalled just below the 200-day EMA, forming a daily pinbar around the weekly R1 resistance level. It seems that the high value is set. The price has hit a 4-day low and is looking for a descent to the 89.0 support zone as the 89.50 area will likely provide interim support along the way. From here, the bias remains bearish below the February low resistance zone.
EUR/JPY 30 minute chart:
A bearish trend has formed on the 30 minute chart and the price is correcting around the low of 176.78. We believe this drop could extend towards 146.60 near last week’s VPOC (Volume Control Point). The bias remains bearish below 147, but we would consider fading out to a minor rally below 146.90 or waiting for a break to another cycle low.
Next economic event (time of GMT+1)
— By Matt Simpson
Follow Matt on Twitter @cLeverEdge
