- Australian retail sales slightly better than expected at +0.5% MoM
- Latest UK economic data showed low consumer confidence, stagnant house prices and median wage rises above 2%
- Japan’s manufacturing PMI plunges sharply in March after earthquake and tsunami, now showing industry contraction
- Regional stockmarkets largely unchanged
- Gold $1429/oz; Oil $104.70/bbl
USD/JPY opened in Asia at 82.90 but immediately moved higher as more hedge fund buying emerged in the JPY crosses, AUD/JPY in particular. USD/JPY managed to trade marginally above the overnight high but the weight of offers around 83.25 was too heavy and the move eventually reversed. Last minute end-of-financial-year JPY buying by Japanese corporates was also significant. Intraday JPY shorts have also thrown in the towel as the session winds down. Ranges: USD/JPY 82.57/83.21, EUR/JPY 116.71/117.54
AUD/USD opened above 1.0310 and the retail sales data along with the hedge fund buys in AUD/JPY, gave the bulls an excuse to try for barriers at 1.0350. These were well protected and a high of 1.0348 was printed. Ranges: 1.0308/48
EUR/USD has again been at the mercy of EUR/JPY flows. There has only been a gradual move higher but pullbacks have also been small despite talk of China selling near 1.4150 and heavier offers near 1.4175. Ranges: 1.4113/47, EUR/CHF 1.2967/96
The rather dull UK economic data had little effect on the sterling. Cable broke above the overnight high but didn’t trouble reported offers at 1.6120. EUR/GBP had a quiet session. Ranges: 1.6066/1.6212, .8777/90.
