Asian equities maintained the positive momentum from Wall Street where the French election rally spilled over and the upcoming announcement of tax relief from Trump helped keep sentiment healthy. The Nikkei 225 gained 0.8%, kept lower by the strengthening JPY as we saw the USDJPY reclaim 110.00 and below. In China, the Shanghai Comp gained 0.4% while the Hang Seng managed an impressive gain of 0.9% thanks to increased liquidity injections by the PBOC. The ASX 200 was closed in observance of ANZAC day but will likely have the positive momentum priced in when it openness provided that global sentiment remains bullish and the upcoming data out of Australia impresses markets. The data expected comes in the form of the CPI m/m which if it beats expectations will see the ASX 200 and the AUD strengthen and vice versa if it fails to meet expectations.
In FX, we saw relatively muted trade form the EU and the UK as the GBPUSD and EURUSD remained range bound with no clear direction. Today’s UK Public Spending figure will see the GBP strengthen if it beats expectation wile a worse than expected release will see the GBP fall. Out of the US, we have the CB consumer Confidence and New Home Sales figures being released. Better than expected releases will see the USD strengthen across the board and vice versa should the figure fail to meet expectations. Elsewhere, the JPY continues to weaken today after a brief rally against the USD, which saw the pair test the 109.50 support level before bulls reentered to drive price back above the 110.25 resistance level.
In commodities, gold was range bound as neither side could hold onto any serious gains, we are now treading between 1270 and 1275 as further direction is fought over. Buyers will have the 1300 handle in their scopes while sellers will have the 1250 support level in their sights. Crude oil briefly popped above the $50 mark but buyers could not hold onto gains as we now see the commodity back below the handle as oversupply concerns continues to weigh it down.