Asian equities may trade sideways today following yesterday’s risk profile price action. US stocks traded within a tight range, remaining mostly unchanged in volatile trading, as investors reacted to the mixed response to the Fed’s senior loan officer survey. The survey showed a tightening of credit availability, impacting companies’ margins and signalling an imminent economic slowdown. However, this was in line with Fed Chair Powell’s remarks last week.
Looking ahead, all eyes are on China’s Trade Data for April. Export growth is expected to ease, leading to a lower trade surplus, while import growth is expected to be nearly flat. Any positive surprise on the data could bring tailwinds to Asian markets due to the cyclical nature of the data. It could ease some recession fears and improve market sentiment. On the political front, President Biden and House Speaker McCarthy are scheduled to discuss the debt limit, while the US Consumer Price Index for April will be released on Wednesday and the Producer Price Index on Thursday. These data releases could lead to hedging and directional bets ahead of the data, with the USD, Gold, and US Treasuries yields levels being key macro assets to watch.
© 2019 High Leverage FX - All Rights Reserved.
© 2019 High Leverage FX - All Rights Reserved.