NZIER shadow board recommended that RBNZ stays unchanged this Thursday and that it should adopt a tightening bias. NzdUsd edged higher after – Bloomberg News said macro funds also bought NzdUsd – they too sold AudNzd, positioning for tonight’s Aussie budget. Judging from the chart, they didn’t get much juice out of that ahead of Aussie data.
Australia March retail sales was weaker than thought at -0.1%, revision was lower at -0.2% from -0.1%. AudUsd fell from 0.7395 to 0.7364. Dalian Iron ore futures Sept Contract fell 2% added some pressure on AudUsd, printed low 0.7355. Traders are watching 0.7300 with care, close below 0.7298 points the Aud a lot lower.
Cable has been surprisingly firm today versus Usd and Euro. Earlier, UK BRC April like-for-like sales jumped an amazing 5.6% from a minus 1%. This is largest increase since 2002. Also, British PM Theresa May said she will put a cap on unfair energy price rises if she is re-elected on June 8. May said this in a private commentary in The Sun (not page 3). Spot GbpUsd has climbed slowly to 1.2956, EurGbp traded to 0.84315. Offers are mentioned above 1.2980.
Another dull session for EurUsd. Strategic accounts are looking to buy this on dips, so are the real money accounts. Intraday sellers near 1.0940 and profit taking reported close to 1.0990. The 200-Day SMA at 1.0923, 1.0890 will see some demand surface.
Post-French elections, most newspapers are focussing on the June parliamentary vote which is hindering Emmanuel Macron’s reform plan. FT said this vote is even harder to predict than the presidential one. Many of France’s 577 constit
Oil price is rather stable but weak Aussie is weighing on the Loonie. Sellers are reported in the 1.3755 to 1.3800.