(07 April 2020)DAILY MARKET BRIEF 2:The German factory orders fell less than expected
In the currency markets, the AUDUSD traded past the 0.6150 as the Reserve Bank of Australia (RBA) maintained its interest rates unchanged at
the historical low of 0.25% at today’s monetary policy meeting.
The EURUSD fluctuated within a 30-pip range around the 1.08 level. The
German factory orders fell less than expected in February, while the industrial production during the same month remained unexpectedly
resilient at 0.3% versus a 0.9% decline expected by analyst. In Italy, however, February retail sales data should give an early indication
on how bad the consumer activity may have been impacted by the coronavirus outbreak. A consensus of analyst expectations points at a 0.4%
decline, which could be easily beaten to the downside.
Elsewhere, the Asian shares mostly gained except shares in Sydney which have been pulled
lower by energy and mining stocks.
Gold rallied past the $1670 an ounce as the precious metal gained parallel to risk assets yesterday.
Decent offers should cap the upside potential approaching the $1700-resistance.
Activity on FTSE futures (+0.13%) hint at a slightly
positive start, but the energy-heavy index could feel the pressure of a downside correction in oil prices amid growing uncertainties
regarding Saudi and Russia’s ability to agree on a sizeable cut in their production.
By Ipek Ozkardeskaya
