Soft Greenback Pushes Aust Dollar Higher

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Falls in the greenback have helped the Australian dollar climb higher.

At 12pm (AEDT) on Tuesday, the local currency was trading at US75.46 cents, up from US74.94 cents on Thursday.

The greenback lost ground overnight after weaker-than-expected US economic data reduced concerns about potential interest rate rises.

BK Asset Management managing director Kathy Lien says it’ll be a pivotal week for the greenback, which will impact the Aussie’s fortunes too.

US Federal Reserve Chair Janet Yellen will give a speech on Wednesday morning (AEDT) and a key US labour market report is due out on Friday night, she said.

Source : Market Spectator

Gold Holds Advance as Investors Weigh Fed Rate Path, Inflation

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Gold held a gain from a one-month low as investors weighed the outlook for U.S. interest rates this year after data on Monday showed the Federal Reserve’s preferred measure of inflation slowed last month.

Bullion for immediate delivery traded at $1,220.88 an ounce at 9:02 a.m. in Singapore, from $1,221.71 on Monday, when it closed 0.4 percent higher in a rebound from $1,208.38, the lowest intraday level since Feb. 23, according to Bloomberg generic pricing.

Gold is this year’s best performing commodity on speculation that the Fed may refrain from tightening rates, in part as inflation has lagged behind officials’ 2 percent goal. While bullion is seen as an inflation hedge that can advance during periods of price gains, the metal also benefits from a low-rate environment. Fed Bank of San Francisco President John Williams said Monday the global economy was having a significant impact on measures U.S. policy makers watch to determine interest rates.

Source : Bloomberg

China Stocks Drop in Early Trade With Tech Shares Leading Losses

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China stocks dropped for a second day, with technology and property companies leading losses as Hong Kong’s market reopened after the Easter break.

The Shanghai Composite Index slipped 0.5 percent to 2,944.276 as of 9:41 a.m. local time, while Hong Kong’s Hang Seng China Enterprises Index fell 0.4 percent to 8,665.77. Developers declined on the mainland on Monday after Shenzhen joined Shanghai in introducing measures late last week to tame soaring real-estate prices, including increasing down-payment requirements.

In a potential boost for energy companies, China’s top planning agency signed off on a three-year plan to transform and upgrade the nation’s petrochemical sector, Yicai.com reported, citing Zhao Jungui, vice-chairman of the China Petroleum and Chemical Industry Federation.

Source : Bloomberg

Asia Stocks Fall as Japan Goes Ex-Dividend, Pharma Shares Slide

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Asian stocks fell for the first time in three days as health-care companies led losses and more than two-thirds of the companies in Japan’s Topix index traded without the right to the next dividend.

The MSCI Asia Pacific Index slipped 0.4 percent to 127.55 as of 9:01 a.m. in Tokyo. The gauge is up 7.1 percent since the start of March, on course for the best month since October. The Topix slid 0.8 percent. Data Monday showed the Federal Reserve’s preferred measure of inflation slowed, clouding the outlook for higher interest rates in 2016. U.S. equity exchanges saw their slowest trading day of the year, while markets in Hong Kong and Australia reopen Tuesday.

Clues on the trajectory of U.S. interest rates will come this week from reports due on employment, manufacturing, housing and consumer confidence. Fed Chair Janet Yellen is due to speak at an event hosted by the Economic Club of New York on Tuesday.

Source : Bloomberg

Japan Stocks Fall as Over 1,500 Topix Members Trade Ex-Dividend

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Japanese stocks fell, paring the Topix index’s first monthly advance in four months, as more than two-thirds of the companies in the measure traded without the right to receive the next dividend.

The Topix declined 1 percent to 1,368.79 at 9:01 a.m. in Tokyo, with all of the 33 industry groups sinking. The measure is on course for a 5.5 percent gain in March. The Nikkei 225 Stock Average retreated 0.8 percent to 16,997.61. More than 1,500 Topix members trade ex-dividend Tuesday, equating to a 13.2 point drag on the measure, data compiled by Bloomberg show. Federal Reserve Bank Chair Janet Yellen will speak at an event hosted by the Economic Club of New York.

Futures on the Standard & Poor’s 500 Index were little changed. The underlying U.S. equity gauge rose less than 0.1 percent after weaving between gains and losses, as investors assessed economic data for clues on the course for interest rates.

The yen traded at 113.38 per dollar on Tuesday after posting its longest streak of declines since October.

Source : Bloomberg