Opening Comment 03.15
The Australian Dollar has been one of the weaker currencies over the past few session on fears of some regulatory changes in China and pressures for the Yuan to be more properly in line with fundamentals. However, Premier Wen has been out over the weekend attempting to downplay the pressure after saying that the Yuan was not undervalued, while also being highly critical of outside pressures over China’s FX policy.
Elsewhere, the EconFin meeting is set to go in Brussels today, and many have been speculating that a bailout deal for Greece will be announced. But both French and German ministers have come out denying such speculation. Global equities are tracking lower today, with risk aversion back on the rise as rating agency Moody’s warns that both the US and UK are at risk of losing their AAA credit ratings should the countries not be able to get their finances back in line. On the data front, New Zealand performance services was a tad firmer than the previous print, while UK rightmove house prices were significantly worse than previous.
Looking ahead, the calendar is light in European trade, with the only key releases coming from Swiss producer and import prices (0.1% expected) at 8:15GMT, and Eurozone employment at 10:00GMT. US equity futures point to a lower open, while commodities are mixed, with oil on the offer and gold slightly bid.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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