Image Source: Pixabay
 

Markets Return From Holidays With A Relatively Upbeat Start, Bitcoin Above 30k

Asian equities traded with an upbeat tone to start the holiday-shortened trading week, with most major money centers coming back online overnight. The uptick in risk sentiment was supported by a late upturn on Wall Street. Overnight the Nikkei 225 rescaled the 28k handle with index investors taking Yen weakness as a positive for stocks, while the Hang Seng and Shanghai Comp were less buoyant with Hong Kong playing catch-up, whilst the on-land index was capped as cooling inflation data was coupled with additional geopolitical risk seen in further escalation of tensions over Taiwan. 

Bitcoin saw a decent rally over the extended holiday weekend ticking over 30k for the first time since June 2022, with investors seeking additional diversification given recent banking system turbulence.

It is a quiet start to the week in terms of the data docket. In the Eurozone, investors will parse the Sentix investor confidence survey set for release this morning. The measure has seen improvement in sentiment in recent reports, although as is the case with most sentiment surveys, the incremental improvements are coming from very depressed levels so investors are currently choosing to discount the data. Another factor that investors will be paying close attention to is the possibility of disappointments in the data related to concerns around the banking sector crisis, which although seemingly contained has left some participants concerned about future turmoil. Data delivered from some European constituent countries suggests the potential for a decline in March Eurozone retail sales also released this morning.

Stateside investors will eye the NFIB small business indicator as a timely gauge of this key part of the US economy, as with the Eurozone, US investors will be keen to see the impact of recent banking concerns. Markets will also hear from one of the newer members of the FOMC with Chicago Federal Reserve President Goolsbee scheduled to speak later today. His perspective on current US economic conditions will be a fresh perspective, however, as an active voter this year his comments will be an additional input into the committee's views on fiscal conditions as markets set up to digest tomorrow's key US inflation release.
 

FX Options Expiries For 10 am New York Cut 

(In bold represent larger expiries, more magnetic when trading within daily ATR)

• EUR/USD: 1.0760 (EU1.81B), 1.0800 (EU1.42B), 1.0600 (EU1.35B)
• USD/JPY: 130.00 ($1.83B), 133.00 ($1.07B), 125.15 ($698M)
• AUD/USD: 0.6625 (AUD672.5M), 0.6900 (AUD604.3M), 0.6773 (AUD450.3M)
• USD/CNY: 6.8800 ($627M), 6.8000 ($600M), 6.8300 ($500.6M)
• USD/CAD: 1.3400 ($465.4M)
• GBP/USD: 0.9430 (GBP500.2M), 1.3135 (GBP465.9M), 1.1105 (GBP349.4M)
• USD/MXN: 18.35 ($358.1M)
• USD/BRL: 5.0000 ($515M), 5.2570 ($418.5M), 5.3175 ($413.7M)
• EUR/GBP: 0.8890 (EU536.6M)
   

Overnight News of Note

• Bitcoin Breaks Above $30k For First Time Since June 2022
• Stocks Climb Amid Buoyant Sentiment Tuesday; US Dollar Slips
• China’s Consumer Inflation Slows, Producer Prices Fall Further
• Bank Of Korea Leaves Key Rate Unchanged As Expected
• New BoJ Chief Ueda Backs Ultraeasy Policy As He Takes Helm
• China May Keep Injecting Cash Via MLF At Unchanged Rate - Daily
• Fed's Williams: Not Worried By Divergent Market View On Rate Policy
• Fed's Williams Doubts Monetary Policy Spiked Banking Sector Stress
• ECB Isn’t Done Hiking Rates If Baseline Holds, De Cos Says
• Italy To Cut 2024 GDP Growth Target To 1.4% VS Previous 1.9%
• Oil Rises As US Stockpiles May Drop, Demand Signs Stay Strong
• Citigroup Sees Oil Falling Despite OPEC Efforts To Prop Near $80
• Stocks Climb Amid Buoyant Sentiment Tuesday; US Dollar Slips
• Warren Buffett Says He Intends To Add To Japanese Stock Holdings
• Boeing Targets 2025 For Return To Pre-Crisis 737 MAX Production Rates

(Sourced from Bloomberg, Reuters and other reliable financial news outlets)
 

Technical & Trade Views

SP500 Bias: Intraday Bullish Above Bearish Below 4080

• Primary support is 4000
• Primary objective is 4207
• Below 3985 opens 3950
• 20 Day VWAP bullish, 5 Day VWAP bullish

(Click on image to enlarge)

EURUSD Bias: Intraday Bullish Above Bearish below 1.0930

• Primary support  is 1.07
• Primary objective is 1.1128
• Below 1.0700 opens 1.0660
• 20 Day VWAP bullish, 5 Day VWAP bullish

(Click on image to enlarge)

GBPUSD Bias: Intraday Bullish Above Bearish below 1.24 - Target Hit, New Pattern

• Primary support  is 1.2250
• Primary objective 1.2659
• Below 1.22 opens 1.2010
• 20 Day VWAP bullish, 5 Day VWAP bullish

(Click on image to enlarge)

USDJPY Bias: Intraday Bullish above Bearish Below 133.00

• Primary resistance  is 135.15
• Primary objective is 129.15
• Above 136 opens 137.90
• 20 Day VWAP bearish, 5 Day VWAP bearish

(Click on image to enlarge)

AUDUSD Bias: Intraday Bullish Above Bearish below .6696 

• Primary resistance is .6740
• Primary objective is .6950
• Below .6560 opens .6450
• 20 Day VWAP bearish, 5 Day VWAP bearish

(Click on image to enlarge)

BTCUSD Intraday Bias: Bullish Above Bearish below 29000 - Target Hit, New Pattern

• Primary support 23000
• Primary objective is 30500
• Below 23000 opens 22400
• 20 Day VWAP bullish, 5 Day VWAP bullish

(Click on image to enlarge)

More By This Author: