Asia stocks rally stalls as Wall Street loses steam, dollar sags;
Asian stocks stalled on Tuesday, halting an earlier rally after Wall Street shares lost steam, while the dollar sagged on the back of declining U.S. yields. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS inched down 0.05 percent. The index had surged 1.5 percent on Monday following firm U.S. jobs numbers, while low wage growth eased concerns about inflation and faster central bank rate hikes. But a mixed performance by U.S. shares overnight cooled investor risk appetite in Asia. The S&P 500 .SPX and the Dow .DJI slipped on Monday as the U.S. tariffs signed into law last week weighed on industrials, while gains in tech stocks boosted the Nasdaq .IXIC. [.N] Focus now turns to U.S. consumer price data due later on Tuesday for the global markets to gauge inflation trends in the world’s largest economy and as a guide for upcoming Fed policy. Australian shares lost 0.5 percent, South Korea’s KOSPI .KS11 fell 0.2 percent and Japan’s Nikkei .N225 shed 0.8 percent. Read More @ https://www.reuters.com/article/us-global-markets/asia-stocks-rally-stalls-as-wall-street-loses-steam-dollar-sags-idUSKCN1GP02B?feedType=RSS&feedName=businessNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FbusinessNews+%28Business+News%29
AUD BE CAUTIOUS – THERE ARE SIGNS OF CRACKS ALREADY
There are growing warning signs on Australian household debt – and credit risk is even worse in China;
Markets were boosted on Friday night by US employment data which absolutely smashed expectations. There were 313,000 jobs added in February — easily beating an already strong forecast of 205,000. And while more people found work, the data showed wage growth moderated with a 2.6% rise — down from the 2.9% gain in January which set off a round of panic in markets about the prospect of rising inflation and higher interest rates. The resulting “Goldilocks” outcome — a stocks-friendly combination of steady growth and low inflation — gave rise to heavy demand for risk assets to end the week. Bonds were sold off and the S&P500 closed 1.74% higher on the day, while the Aussie dollar was well-bid across the board and finished the week at 0.7848 US cents. Read More @ https://www.businessinsider.com.au/australian-diary-everything-you-need-to-know-about-the-week-ahead-for-markets-2018-3
WHAT IS THE USD CHART SAYING?
NEWS THAT MIGHT AFFECT YOUR TRADES TODAY.
- NZD & AUD this morning data is in favor for currencies but Australia Small business shows signs of weakness; we stay neutral for both AUD & NZD pairs till US releases the CPI data at 8.30pm tonight.
- 12.30pm – Japan will release the Tertiary Industry Activity which is expected to be good; we maintain BUY for JPY.
- 2.30pm – 5.00pm – France and Italy will release their data – which is expected to be good; expect little volatility as the market awaits for US CPI data release.
- 7.30pm – UK will release their annual budget – which is expected to be in favor for the GBP pairs.
- 8.30pm – US CPI – which is expected to be no change – however we believe the data will be in favor for USD. We buy USD.
- 10.15pm – BOC Poloz will speak and is expected to be hawkish. We stay neutral till the session is over. We maintain SELL for USDCAD on WEDNESDAY.
Overall the market will be cautious till 8.30pm for the US data. Always be mindful of Money management.
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