9 Apr 2014
Risk appetite returns, markets focused on FOMC minutes
FXStreet (London) - We had little of note overnight to move markets, with a quiet calendar – Aussie housing and consumer confidence data were perhaps the only releases of note.
Japan jitters
Risk appetite returned after two days of aversion, with the exception of Japan, which saw a rebound of USD/JPY to JPY102.0100, up 0.2 percent after a week of losses. The Nikkei also suffered overnight, falling 2.1 percent to 14,299.69.
AUD ripe for jawboning
The Australian Westpac consumer confidence was an improvement to 0.3 in April after falling 0.7 percent last month. The index came in at 99.7 after 99.5 in March.
Australian home loans also saw a rebound, climbing 2.3 percent in February after zero growth in January.
AUD/USD is currently trading at USD0.9376, down from earlier highs of USD0.9387 – a five-month high. At these levels the Aussie dollar seems ripe for some jawboning from the Reserve Bank of Australia. The central bank has toned down talk over AUD strength recently, but at these levels we may see some talking down from Glenn Stevens.
UK trade balance improves slightly
UK trade balance numbers came in better than expected, but still remain further in deficit than the Treasury is comfortable with. The total trade deficit came in at GBP2.058bn, down from GBP2.203 in January. The goods trade deficit shrunk to GBP9.094bn from GBP9.463bn.
FOMC the focus of the day
With little on the calendar in Europe this morning, focus is going to be almost entirely on the US Federal Reserve’s minutes released at 19:00GMT and flattening an already quiet market in the run up. Focus will centre on whether the Federal open market committee held its hawkish stance despite some weaker US data released before the committee’s 18-19 March meeting.
Japan jitters
Risk appetite returned after two days of aversion, with the exception of Japan, which saw a rebound of USD/JPY to JPY102.0100, up 0.2 percent after a week of losses. The Nikkei also suffered overnight, falling 2.1 percent to 14,299.69.
AUD ripe for jawboning
The Australian Westpac consumer confidence was an improvement to 0.3 in April after falling 0.7 percent last month. The index came in at 99.7 after 99.5 in March.
Australian home loans also saw a rebound, climbing 2.3 percent in February after zero growth in January.
AUD/USD is currently trading at USD0.9376, down from earlier highs of USD0.9387 – a five-month high. At these levels the Aussie dollar seems ripe for some jawboning from the Reserve Bank of Australia. The central bank has toned down talk over AUD strength recently, but at these levels we may see some talking down from Glenn Stevens.
UK trade balance improves slightly
UK trade balance numbers came in better than expected, but still remain further in deficit than the Treasury is comfortable with. The total trade deficit came in at GBP2.058bn, down from GBP2.203 in January. The goods trade deficit shrunk to GBP9.094bn from GBP9.463bn.
FOMC the focus of the day
With little on the calendar in Europe this morning, focus is going to be almost entirely on the US Federal Reserve’s minutes released at 19:00GMT and flattening an already quiet market in the run up. Focus will centre on whether the Federal open market committee held its hawkish stance despite some weaker US data released before the committee’s 18-19 March meeting.