Morning wrap (04.04.2023)

05:53 4 April 2023
  • US indices finished yesterday's trading mixed - S&P 500 gained 0.37%, Dow Jones moved 0.98% higher, Nasdaq dropped 0.27% and Russell 2000 traded flat

  • Indices from Asia-Pacific traded mostly higher today - Nikkei gained 0.3%, S&P/ASX 200 traded 0.1% higher, Kospi added 0.3% and NIfty 50 moved 0.2% higher. Indices from China traded mixed

  • DAX futures point to a higher opening of the European cash session today

  • The Reserve Bank of Australia decided to keep the main rate unchanged at 3.60% at today's meeting. Such a decision was expected. AUD dropped as wording of the statement hinted that future rate hikes are not so certain

  • RBA noted that Australian banking system is strong, well capitalized and has ample liquidity, and therefore should not be viewed to be at similar risk as recently-failed banks in Europe or the United States

  • China has once again voiced discontent over possible meetings of Taiwanese president with US officials, saying that it will undermine regional peace, security and stability

  • ECB Simkus said that the European Central Bank is done with the larger part of the rate cycle. ECB Holzmann said that there is likely room for another 50 basis point rate hike

  • SNB Schlegel said that Swiss central bank is ready to conduct more FX interventions if necessary

  • South Korean CPI inflation decelerated from 4.8 to 4.2% YoY in March (exp. 4.3% YoY) while core gauge stayed unchanged at 4.0% YoY. This was the lowest reading of headline CPI since March 2022

  • Morgan Stanley lowered its Q4 2023 Brent price forecast from $95.00 to $87.50 per barrel and 2024 forecast from $95 to $85 per barrel. Bank says that OPEC output cut hints that demand must be weak

  • Major cryptocurrencies are trading higher today - Bitcoin gains 0.7%, Ethereum trades 0.8% higher and Dogecoin rallies around 5%. Dogecoin surged yesterday after Elon Musk changed Twitter logo to Shiba Inu dog

  • Energy commodities are trading higher - oil gains around 0.4% while US natural gas prices jump 1.2%

  • Precious metals are pulling back - gold and platinum trade 0.3% lower while silver drops 0.6%

  • NZD and USD are the best performing major currencies while JPY and AUD lag the most

AUDUSD is pulling back after the RBA decided to keep rates unchanged. The pair is retesting a recently-broken 0.6765 resistance zone but this time as a support. Source: xStation5

This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

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