Australia's trade balance shows smaller surplus than expected
Trade Surplus Decline: Australia's trade surplus on goods decreased to A$4.61B in September 2024, down from A$5.28B in August, missing market expectations for an increase.
Export and Import Trends: Exports fell by 4.3%, primarily due to a decline in other mineral fuels, while imports also decreased by 3.1%, driven by fuels and lubricants.
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Indian Rupee Rapidly Returns to Friday's Record Lows Despite Further RBI Action
USD Strengthening: The US dollar has strengthened as traders hedge against risks related to US-Iran negotiations, although some weakness is observed as hedges are unwound. Traders are closely monitoring developments, particularly from Trump's social media updates.
Indian Rupee Dynamics: The Indian rupee initially opened higher after the RBI imposed limits on banks' open positions in the currency market, but gains quickly faded. The rupee remains on a bearish trend against the dollar, with potential volatility depending on US-Iran negotiations.
Technical Analysis of USDINR: On the daily chart, the USDINR pair is trading near the upper bound of a broken channel, with dip-buyers expected to push prices higher unless sellers regain control. Short-term charts indicate a similar trend, with sellers looking for pullbacks and buyers targeting breaks higher.
Upcoming Economic Data: Key economic indicators are set to be released this week, including Fed Chair Powell's speech, US Consumer Confidence, Job Openings, ADP data, Retail Sales, ISM Manufacturing PMI, Jobless Claims, and the NFP report, which could influence market movements.
USDJPY Drops Below Critical 160.00 Level as Verbal Intervention Intensifies
USD Overview: The US dollar has strengthened as traders hedge against risks related to US-Iran negotiations, with cautious optimism about potential talks in Islamabad. However, some weakness is observed as hedges are unwound, and traders are closely monitoring Trump's social media for market-moving updates.
JPY Overview: The Japanese yen remains under pressure due to stagnant inflation and geopolitical risks, with the latest CPI report showing inflation below the Bank of Japan's target. Despite wage growth indicating potential tightening, the BoJ may delay action until geopolitical tensions ease.
USDJPY Technical Analysis: On the daily chart, USDJPY attempted to break above 160.00 but retreated, with buyers looking for opportunities around 157.65 for a potential rally. The 4-hour chart shows a minor upward trend, suggesting buyers may step in at 159.60, while sellers target a break for a drop to 157.65.
Upcoming Economic Events: Key economic data releases are scheduled, including Fed Chair Powell's speech, Tokyo CPI, US Consumer Confidence, and Job Openings, culminating in the US Non-Farm Payroll report at the end of the week.
Weekly Market Forecast: March 30 - April 3
Market Focus: The FX market is quiet on Monday with no significant economic events, while attention is on the conflict in Iran and Fed Chair Powell's discussion at Harvard, which may not impact markets significantly.
Upcoming Economic Data: Key economic releases this week include Eurozone inflation data, U.S. job openings, retail sales, and Canadian GDP, with expectations of modest growth in Canada and stronger inflation in the Eurozone due to rising energy prices.
Canadian Economic Outlook: Canada is experiencing a slowdown in GDP growth, attributed to disruptions in the auto sector and housing activity, but a rebound is anticipated in February as auto production normalizes and consumer spending remains strong.
U.S. Employment and Spending Trends: U.S. retail sales are expected to rise, driven by strong auto purchases, while average hourly earnings and non-farm payrolls show mixed signals, with potential risks of a slight increase in the unemployment rate amid rising energy costs.
USD Rises at the Beginning of the New Week
- Market Trends: The decline in 'risk' assets observed on Friday is continuing into early trading in Asia.
- Currency Movement: The US dollar has shown a slight increase, which is persisting in the current market conditions.
USDCHF Approaches Key Trendline Breakout as US Dollar Strengthens
USD Strengthening: The US dollar has strengthened following Iran's rejection of a proposed ceasefire, which included unacceptable conditions for the US, leading to a deadlock and continued support for the dollar until de-escalation occurs.
CHF Interest Rates: The Swiss National Bank (SNB) maintained interest rates but indicated a readiness to intervene in the foreign exchange market due to Middle Eastern conflict, while also revising inflation forecasts upward due to energy price shocks.
USDCHF Technical Analysis - Daily: The USDCHF is trading near a major downward trendline, with sellers expected to enter at this level, while buyers will look for a breakout to target the 0.8040 level.
USDCHF Technical Analysis - Shorter Timeframes: On the 4-hour chart, USDCHF is consolidating between support and the trendline, while the 1-hour chart shows a minor upward trendline indicating bullish momentum, with traders likely to play the range until a breakout occurs.
Indian Rupee Faces Potential New Record Lows as Iran Dismisses Ceasefire
USD Strengthening: The US dollar has strengthened due to Iran's rejection of a ceasefire proposal, which included unacceptable conditions for the US, leading to a deadlock and continued support for the dollar until de-escalation occurs.
Indian Rupee Fluctuations: The Indian rupee initially gained after a ceasefire announcement but faced uncertainty due to mixed messages from Iran, with traders speculating on potential military actions by the US that could impact the USDINR exchange rate.
Technical Analysis - Daily Timeframe: The USDINR pair has broken out of a channel and surged above 94.00, with potential for buyers to step in on pullbacks, while sellers will look for a price drop back inside the channel.
Technical Analysis - Shorter Timeframes: On the 4-hour chart, an upward trendline supports bullish momentum, while the 1-hour chart indicates that a break above 94.60 could lead to increased buying, with sellers targeting pullbacks around 93.50.
Indian Rupee Rapidly Returns to Friday's Record Lows Despite Further RBI Action
USD Strengthening: The US dollar has strengthened as traders hedge against risks related to US-Iran negotiations, although some weakness is observed as hedges are unwound. Traders are closely monitoring developments, particularly from Trump's social media updates.
Indian Rupee Dynamics: The Indian rupee initially opened higher after the RBI imposed limits on banks' open positions in the currency market, but gains quickly faded. The rupee remains on a bearish trend against the dollar, with potential volatility depending on US-Iran negotiations.
Technical Analysis of USDINR: On the daily chart, the USDINR pair is trading near the upper bound of a broken channel, with dip-buyers expected to push prices higher unless sellers regain control. Short-term charts indicate a similar trend, with sellers looking for pullbacks and buyers targeting breaks higher.
Upcoming Economic Data: Key economic indicators are set to be released this week, including Fed Chair Powell's speech, US Consumer Confidence, Job Openings, ADP data, Retail Sales, ISM Manufacturing PMI, Jobless Claims, and the NFP report, which could influence market movements.
USDJPY Drops Below Critical 160.00 Level as Verbal Intervention Intensifies
USD Overview: The US dollar has strengthened as traders hedge against risks related to US-Iran negotiations, with cautious optimism about potential talks in Islamabad. However, some weakness is observed as hedges are unwound, and traders are closely monitoring Trump's social media for market-moving updates.
JPY Overview: The Japanese yen remains under pressure due to stagnant inflation and geopolitical risks, with the latest CPI report showing inflation below the Bank of Japan's target. Despite wage growth indicating potential tightening, the BoJ may delay action until geopolitical tensions ease.
USDJPY Technical Analysis: On the daily chart, USDJPY attempted to break above 160.00 but retreated, with buyers looking for opportunities around 157.65 for a potential rally. The 4-hour chart shows a minor upward trend, suggesting buyers may step in at 159.60, while sellers target a break for a drop to 157.65.
Upcoming Economic Events: Key economic data releases are scheduled, including Fed Chair Powell's speech, Tokyo CPI, US Consumer Confidence, and Job Openings, culminating in the US Non-Farm Payroll report at the end of the week.
Weekly Market Forecast: March 30 - April 3
Market Focus: The FX market is quiet on Monday with no significant economic events, while attention is on the conflict in Iran and Fed Chair Powell's discussion at Harvard, which may not impact markets significantly.
Upcoming Economic Data: Key economic releases this week include Eurozone inflation data, U.S. job openings, retail sales, and Canadian GDP, with expectations of modest growth in Canada and stronger inflation in the Eurozone due to rising energy prices.
Canadian Economic Outlook: Canada is experiencing a slowdown in GDP growth, attributed to disruptions in the auto sector and housing activity, but a rebound is anticipated in February as auto production normalizes and consumer spending remains strong.
U.S. Employment and Spending Trends: U.S. retail sales are expected to rise, driven by strong auto purchases, while average hourly earnings and non-farm payrolls show mixed signals, with potential risks of a slight increase in the unemployment rate amid rising energy costs.
USD Rises at the Beginning of the New Week
- Market Trends: The decline in 'risk' assets observed on Friday is continuing into early trading in Asia.
- Currency Movement: The US dollar has shown a slight increase, which is persisting in the current market conditions.
USDCHF Approaches Key Trendline Breakout as US Dollar Strengthens
USD Strengthening: The US dollar has strengthened following Iran's rejection of a proposed ceasefire, which included unacceptable conditions for the US, leading to a deadlock and continued support for the dollar until de-escalation occurs.
CHF Interest Rates: The Swiss National Bank (SNB) maintained interest rates but indicated a readiness to intervene in the foreign exchange market due to Middle Eastern conflict, while also revising inflation forecasts upward due to energy price shocks.
USDCHF Technical Analysis - Daily: The USDCHF is trading near a major downward trendline, with sellers expected to enter at this level, while buyers will look for a breakout to target the 0.8040 level.
USDCHF Technical Analysis - Shorter Timeframes: On the 4-hour chart, USDCHF is consolidating between support and the trendline, while the 1-hour chart shows a minor upward trendline indicating bullish momentum, with traders likely to play the range until a breakout occurs.
Indian Rupee Faces Potential New Record Lows as Iran Dismisses Ceasefire
USD Strengthening: The US dollar has strengthened due to Iran's rejection of a ceasefire proposal, which included unacceptable conditions for the US, leading to a deadlock and continued support for the dollar until de-escalation occurs.
Indian Rupee Fluctuations: The Indian rupee initially gained after a ceasefire announcement but faced uncertainty due to mixed messages from Iran, with traders speculating on potential military actions by the US that could impact the USDINR exchange rate.
Technical Analysis - Daily Timeframe: The USDINR pair has broken out of a channel and surged above 94.00, with potential for buyers to step in on pullbacks, while sellers will look for a price drop back inside the channel.
Technical Analysis - Shorter Timeframes: On the 4-hour chart, an upward trendline supports bullish momentum, while the 1-hour chart indicates that a break above 94.60 could lead to increased buying, with sellers targeting pullbacks around 93.50.
