Talking Points:
- US, European Economic Calendars Light on Fundamental Event Risk
- Euro May Fall if ECB Officials Continue to Talk Up Stimulus Options
- Australian Dollar Sold as Asian Stocks Drop on China Growth Fears
Another quiet day on the economic data front will put the spotlight on a busy ECB speaking calendar. No less than five of the central bank’s officials are due to cross the wires throughout the session. The Euro posted its largest daily drawdown in a week yesterday after comments from ECB Vice President Vitor Constancio and board member Sabine Lautenschlaeger.
The former said he and his colleagues were emphasizing slack in the economy at the March policy meeting and reminded markets that the ECB still has tools it can use to deliver stimulus, including rate cuts or quantitative easing. The latter echoed Constancio’s comments.
If this dovish rhetoric amounts to a concerted communication strategy from the Eurozone monetary authority, more of the same can be expected today, threatening to push the single currency lower as prices bump against support near the 1.38 figure against the US Dollar.
The Australian Dollar narrowly underperformed in overnight trade as a slide in Asian stock prices undermined demand for the sentiment-linked currency. The MSCI Asia Pacific regional benchmark index slide 1.4 percent in a move the newswires chalked up to swelling fears about a slowdown in China after this week’s disappointing economic data.
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Asia Session
|
GMT |
CCY |
EVENT |
ACT |
EXP |
PREV |
|
23:30 |
Westpac Consumer Conf Index (MAR) |
99.5 |
- |
100.2 |
|
|
23:30 |
AUD |
Westpac Consumer Confidence (MAR) |
-0.7% |
- |
-3.0% |
|
23:50 |
Tertiary Industry Index (MoM) (JAN) |
0.9% |
0.6% |
-0.5% |
|
|
23:50 |
JPY |
Domestic CGPI (MoM) (FEB) |
-0.2% |
0.2% |
0.2% |
|
23:50 |
JPY |
Domestic CGPI (YoY) (FEB) |
1.8% |
2.1% |
2.5% |
|
23:50 |
JPY |
BSI Large All Industry (QoQ) (1Q) |
12.7 |
- |
8.3 |
|
23:50 |
JPY |
BSI Large Manufacturing (QoQ) (1Q) |
12.5 |
- |
9.7 |
|
0:30 |
AUD |
Home Loans (JAN) |
0.0% |
0.5% |
-3.3% |
|
0:30 |
AUD |
Investment Lending (JAN) |
-3.3% |
- |
2.5% |
|
0:30 |
AUD |
Value of Loans (MoM) (JAN) |
1.5% |
- |
-2.1% |
|
5:00 |
JPY |
Consumer Confidence Index (FEB) |
38.3 |
40.0 |
40.5 |
European Session
|
GMT |
CCY |
EVENT |
EXP |
PREV |
IMPACT |
|
10:00 |
Euro-Zone Industrial Production (YoY) (JAN) |
1.9% |
0.5% |
Medium |
|
|
10:00 |
EUR |
Euro-Zone Industrial Production (MoM) (JAN) |
0.5% |
-0.7% |
Medium |
Critical Levels
|
CCY |
Supp 3 |
Supp 2 |
Supp 1 |
Pivot Point |
Res 1 |
Res 2 |
Res 3 |
|
1.3768 |
1.3813 |
1.3836 |
1.3858 |
1.3881 |
1.3903 |
1.3948 |
|
|
1.6510 |
1.6566 |
1.6591 |
1.6622 |
1.6647 |
1.6678 |
1.6734 |
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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