Forex Today: Antipodeans rally amid weaker USD, risk-on; a quiet calendar ahead

It was a quiet affair in Asia this Monday, with softer tone around the greenback lifting the sentiment across the fx space, as markets expect the Federal Reserve (Fed) to remain accommodative on its monetary policy stance in the week ahead. Among the G10 currencies, the Antipodeans benefited the most from a broadly weaker greenback, as the 2% rally in iron-ore prices combined with the risk-on action in the Asian equities also collaborated to the upbeat tone. The Aussie extended its rally and conquered the 0.71 handle while the Kiwi headed back towards the 0.6900 level.

The USD/JPY pair also advanced to 111.65, as downbeat Japanese exports data weighed negatively on the Yen. Both the Euro and the pound traded modestly flat, as investors remain cautious amid recent Brexit developments and Eurozone growth concerns. The USD/CAD pair traded weaker and looked to test the 1.33 handle, despite the selling in oil prices. Meanwhile. Gold futures on Comex remained under pressure below the 1300 mark amid an uptick in Treasury yields and US equity futures.

Main Topics in Asia

What The PM Offered The DUP – ITV

Back My Brexit Or We’ll Never Leave, Says Theresa May – The Sunday Times

Saudi signals OPEC may need to extend oil cuts until end-2019 – Reuters

Boris urges May to make final appeal on backstop – The UK Telegraph

Trump-Xi meeting to end trade war may be pushed back to June, sources say -SCP

NZIER lowers New Zealand’s 2019 GDP forecasts

UK business investment to fall by most in 10 years in 2019 due to Brexit – BCC

Australia money markets convinced of two 25bps rate cuts – Bloomberg

Japan trade surplus with US declined 0.9% in February

UK FinMin Hammond: “Significant numbers” of MPs support May’s plan, but “not there yet”

Russia’s Novak: Talks need to be held in May to decide OPEC+ future output policy

Gold: Improving risk sentiment recalls sub-$1300 area

Key Focus Ahead

Markets buckle up for a quiet start to a busy week ahead that is dominated by the key central banks‘ monetary policy announcements. On the data front, we have a thin showing in the session ahead, with the only relevant Eurozone trade balance slated for release at 1000 GMT. While at 1100 GMT, the German Bundesbank monthly economic report will be published.

The NA session is also expected to be light on the macro news, with no first-tier US economic releases. At 1230 GMT, the Canadian portfolio investment data will be reported, which likely to virtually have no impact on the markets. Towards NY closing at 2000 GMT, New Zealand’s Westpac consumer survey for Q1 will drop in.

All eyes will remain on the risk trends and Brexit-related headlines, as the UK readies for the third meaningful vote on PM May’s plan scheduled this Thursday, March 21^st.

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