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The markets were mixed in the early European session as investors awaited earnings and key US housing data. The European docket had low-impact news although investors remained sensitive to risk. There will be a release of US Building Permits, New Home Sales and CB Consumer Confidence data later in the New York session.
CADJPY slumped by -0.48% early Tuesday morning following a hotter-than-expected Japanese inflation print. The Japanese BoJ Core CPI YoY rose to 2.9% vs 2.4% anticipated boosting the Japanese Yen on the hawkish outlook. The Canadian dollar tumbled as oil markets weighed sentiment in the near term. Oil eased its 2-day rally ahead of US API weekly crude oil stocks. Upside gains are capped by the 100.60 level and bears could aim for short-term targets at 98.500, an 11-day low. A break below that level could reinforce selling pressure towards the 97.00 level.
GBPUSD lost by -0.27% as bulls retracted from a 7-day high ahead of the US economic data. The UK CBI Industrial trend orders for April remained unchanged at -20 suggesting the manufacturing sector struggled to recover in April. The USD advanced as safe-haven bids increased ahead of US housing data. The pair declined from the 1.2500 level and bears could target the 1.2350 level if the 1.2400 psychological level is breached. Traders should closely watch the US Building Permits and New Home Sales data due for release in the New York session.
AUDNZD sank by -0.50% ahead of Australia’s inflation data due for release early Wednesday. The Australian CPI YoY data is expected to drop to 6.9% vs 7.8% previously underpinning a bearish RBA. The RBA meeting minutes released last week indicated that they would consider inflation data as a gauge for future rate hikes. On the other hand, the New Zealand dollar extended its 3-days of gains as RBNZ maintains a hawkish stance on further tightening. The pair fell from the 1.0925 resistance and currently trading above the 1.0800 near-term support. The 1.0780 could be the next key level as investors shift focus on the Australian PPI data.
European stocks fall with Bank stocks leading the slide. UK100 was down by -0.19% as bulls held steady between the 7900 high and 7850 low. CAC40 plunged by -0.72% towards the 7500-support level as upside gains remain capped by the 7575 level. DAX lost -0.29% from the 15900 level, a daily high and bears could target the 15750 level in the near term.
US stock futures gave in Monday’s gains ahead of US economic data. US500 futures sank by -0.50% as upside gains are capped by the 4150 high and near-term targets are at 4080 and 4050 levels to the downside. US100 futures lost -0.46% after sliding back below the 13000 level and the key support level is at 12800. US30 futures opened lower by -0.43% as the 34000 barrier stands as immediate resistance, on the downside 33500 is a near-term target.
In commodities, oil steadied ahead of API Weekly Crude oil stocks. The US WTI crude oil stocks trimmed their 2-day gains by -0.28% after bouncing off the 77.00 level. Upside gains are capped by the 80.00 level, while on the downside, the 74.00 level could be attractive for bears if 77.00 fails to hold. Brent crude oil stocks sank by -0.11% from the 82.800 level and key support levels to watch out for are 80.80 and 78.00.
