EURUSD R 2: 1.3000 R 1: 1.2900 CURRENT: 1.2845 S 1: 1.2800 S 2: 1.2700
USDJPY R 2: 97.00 R 1: 95.00 CURRENT: 93.93 S 1: 93.70 S 2: 93.20
GBPUSD R 2: 1.5320 R 1: 1.5265 CURRENT: 1.5125 S 1: 1.5000 S 2: 1.4850
AUDUSD R 2: 0.9390 R 1: 0.9300 CURRENT: 0.9077 S 1: 0.9050 S 2: 0.8900
The NZDUSD gained 1% to 0.7244 after it touched 0.7144, the least since April 28 while NZDJPY traded at 68.01 as RBNZ Governor Alan Bollard said the economy is less fragile and the jobless rate dropped to 6% (prev. 7.1%, exp. 7.3%), the most since 1986, signaling interest-rate increases may follow. AUDNZD declined 1% to 1.2502, the lowest since Feb. 3 on prospects Bollard will raise borrowing costs at a faster pace than RBA. RBNZ suggests they are more or less validating market pricing a hike has been fully priced for June and 25bp of hikes at every meeting from then onward. Employment rose 1% (exp. 0.2%) or about 22,000 jobs in Q1 where the increase in employment was unusual given that the end of temporary work during the Christmas and summer holiday period usually sees unemployment increase in Q1. GDP will probably increase 3.2% this year after contracting 1.6% in 2009 according to forecasts. Finance Minister Bill English said the economy has come through the recession in reasonable shape and the jobless rate appeared to be approaching a peak while also adding the government will use its May 20 budget to build on the recovery through tax reform and achieving better value for money spent on public services. The AUDUSD fell to 0.9052 after it dropped as low as 0.9021 the least since March 26 and AUDJPY traded at 85.04 after retail sales rose less than estimated by 0.3% in March (exp. 0.7%, prev. -1.2%), a sign the RBA's interest-rate increases are cooling domestic demand. AUDUSD traded near its lowest in almost six weeks after prices of commodities fell a second day yesterday on concern the Greek debt crisis will spread and undermine EU economies. Consumer confidence remains robust boosted by lower unemployment rate as employers have added almost 200,000 jobs since August, the biggest six-month surge in more than three years, cutting the jobless rate to 5.3%.Japanese stocks tumbled the most this year after a three-day holiday during which concern mounted that an EU debt crisis and China's actions to slow growth will halt a global economic recovery. Speculation that cost cuts and a U.S. economic recovery will boost earnings outweighed concern that China will cool growth and that Greece will struggle to avoid a debt default. The Greece issues are raising concerns about the health of the financial system globally and slowing down the flow of money in markets and a weaker EUR is weighing on exporters' earnings. The USDJPY was at 93.89 and EURJPY rose to 120.60.
The EURUSD traded at 1.2840 after earlier falling to 1.2789, the weakest since March 12, 2009 while EURJPY was at 120.23 on concern Greece's debt crisis will spread through the region after Moody's said Portugal's credit rating may be cut. Moody's placed its Aa2 rating for Portugal on review for a possible downgrade, a process that will conclude within three months. The EURAUD fell to 1.4131 after dropping to 1.4119, a record low a record low before Greece's Parliament debates today austerity measures needed as a condition of an international bailout and after protests against deficit-cutting measures turned deadly. The ECB meets today and investors will be closely watching to see what ECB President Trichet says regarding sovereign concerns that may continue into other EU countries. The EURGBP fell to 0.8477, the weakest since Aug. 6, 2009; amid speculation today's UK election may leave the Conservative Party in a position to form a government while GBPUSD gained to 1.5130 for the first time in five days on speculation a UK index of service companies climbed to 57 (prev. 56.5).