Apr 05

FUNDAMENTAL ANALYSIS BY NSFX 05.04.2016

  • BY: Donal Kelly
  • April, 05th, 2016 19:29 +00:00

Good evening,

The Reserve Bank of Australia kept interest rates at 2% and AudUsd nearly 24 hours after the rate decision is losing 66 pips at 0.7536 (-0.86%), down for the second consecutive day and it may test area  0.748.  UsdJpy  broke its multiple bottom and is trading to a new 2016 low.  The rate is trading at 110.42 (-0.82%), a level traded the last time on October 2014. The Bank of Japan could not weaken the Yen, as the market is pricing the self fulfilling expectations that Kuroda can only temporary devaluate the Yen. The bullish trend on UsdJpy started on 2012 was triggered by the combined actions of quantitative easing from the BOJ and carry trade from hedge funds. Now seems that the BOJ is alone, and low rates of many G10 currencies are in competition with the Yen. EurUsd is flat at 1.1382 and GbpUsd is losing 114 pips at  1.4182 (-0.80%) as IMF Managing Director Lagarde said that Brexit is one the risks of 2016.

Crude Oil is trading at 36.04 $/barrel (+0.95%) and Gold is at 1,230 $*oz (+0.91%).  US indices spent all the session in negative territory and the S&P500 is losing 17.26 points at 2,048.87 (-0.84%). The Asian session will start with the Chinese Caixin Services PMI at 01:45 GMT and at 18:00 GMT will be released the FOMC Minutes.

(20:20 GMT)