The session began with surprise news from the IMF when they stated that the New Zealand currency is currently overvalued by between 10% and 25%. As could be expected, the NZD/USD was crushed on the news, dropping from 0.7110 levels to 0.7065 in a quick move and to subsequent lows near 0.7045 as the day progressed. AUD/NZD benefitted from the IMF comments, jumping from 1.2880 to 1.2950 in a swift fashion. Eventual highs north of 1.2990 were later posted in the pair. Australian Trade Balance came in weaker than anticipated at -1.92B vs. -1.34B, but failed to illicit a response from AUD/USD which was stuck between 0.9150 and 0.9185 for the session. The poor data did not seem to tarnish the expectations for a RBA rate hike next week to the tune of 0.25%.
Japanese Tankan survey came in line with expectations at -14, a fourth straight gain as well as the highest release since 2008 for the survey. While the yen did strengthen on the data, the moves were contained in what has become the familiar ranges we have been accustomed to as of late. Today, USD/JPY was stuck between 93.65 and 93.25. In the crosses, the yen was firmer as well, but only after the appetite for risk waned early in the session. Chinese manufacturing PMI came in just off of estimates, 55.1 versus 55.2, but the markets showed no interest in the data.
The EUR/USD hit an early 1.3560 high riding the risk appetite wave, but that level proved too fortified a resistance level to crack, and the pair retreated and continued to consolidate right near the 1.3500 big figure. Many traders are preparing their positions for both the holiday weekend as well as the US Non Farm Payroll data due up on Friday. Tomorrow, due to the Good Friday holiday, the majority of Europe as well as Australia and New Zealand are closed. Expect extremely thin liquidity heading into the Easter weekend.