29th March 2021 - AUD/USD extends daily rebound to 0.7630 area, looks to close week in red

Good Morning,

Market Headlines

Equity markets were upbeat amid a faster vaccine rollout in the US, banks allowed to raise dividends, a stronger consumer sentiment survey, and quarter-end rebalancing. The S&P500 rose 1.7% to a record closing high. Bond yields and risk-sensitive currencies also rose. Commodities, Brent crude oil futures rose 4.2% to $64.55, copper rose 2.4%, iron ore rose 0.9% to $161.35, and gold rose 0.3%.

Overnight Currency Ranges

AUD/USD 0.7579 0.7645

EUR/USD 1.1763 1.1806

GBP/USD 1.3730 1.3812

USD/JPY 109.13 109.84

NZD/USD 0.6951 0.7002

USD/CAD 1.2561 1.2609

USD/CNH 6.5380 6.5490

AUD/JPY 82.67 83.83

AUD/NZD 1.0895 1.0929

AUD Thoughts

A quiet start to a shortened week with the employment reports for the US and Germany, manufacturing PMIs for the US and China, alongside efforts to unblock the Suez Canal set to be the key events to watch for the days ahead.

The AUD/USD closed last week at 0.7642 and demand is expected to materialize showed we slip further toward 0.7550 while offering interest likely dominates order books and is staggered from 0.7700 - 0.7770.

Event Risk Data Today

New Zealand: The February employment indicator will be released. The absence of international tourists will have had a more noticeable impact on activity over summer, and we expect this to show through in the employment figures over the coming months.

US: The March Dallas Fed index should reflect the broader improvement seen in the other regional manufacturing surveys (market f/c: 14.5). The FOMC’s Waller will speak on the independence of the Federal Reserve.

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