US Morning Notes - USD lower, AUD firms on hawkish RBA comments

Posted by admin as Forex News

FX Highlights

• The USD is trading lower pressured by improving risk appetite sparked by firmer equity market trade and recovery hope, the improvement in risk appetite is attributed to the EU/IMF aid plan for Greece, strong data from the EU and Japan and anticipation that this week’s US nonfarm payrolls will post sharp gains, EUR trades higher supported by diminished fear of Greek debt default and report that EU economic confidence rose to a two year high, AUD supported by hawkish comments from RBA Governor Stevens, JPY trades lower pressured by improving risk sentiment with downside limited by report of strong retail sales from Japan, GBP underperforms as UK mortgage lending slows
• Focus turns to today’s release of US personal income and consumption
• Japan’s February retail sales rose by 0.9%, JPY mixed
• RBA Governor Stevens says interest rates are too low and cannot remain at previous levels, AUD higher
• S&P maintains negative outlook for UK debt, affirms UK AAA credit rating, UK February consumer credit rose to 0.528bln compared to 0.349bln last month, mortgage approvals dipped to 47,094 from 48,099 last month and mortgage lending improves to 1.586bln from 1.536bln last month, GBP higher
• ECB’s Weber says current interest rate levels are appropriate, EU March economic sentiment improves to 97.7 from 95.9 last month,EUR higher
• Fed’s Bullard says finance reform could retard growth
• OECD warns Germany on reliance on exports calls for the country to broaden it economic performance
• White house plans to extend mortgage relief and encourage lenders to modify current payments for the unemployed
• US equity markets set to open higher, European equities 0.25% higher, Nikkei closed 10 points lower

Upcoming Events

• US- Monday, February personal income will be released expected unchanged at 0.1% along with personal consumption expected at 0.3% compared to 0.5% last month
• CAN-Monday, no major Canadian economic data is due for release today