Global equities stronger led by Europe, US dollar rising, ASX futures up 22 points

Global equities were stronger Friday night. Major US markets were up about 0.5%, the UK was up over 1% and Germany led Europe - up 1.71%. After a few straight sessions of weakness, the EURUSD (black line, first chart) currency pair has traders unleashing their bearish views once again and the pair is a little over one cent from its March lows. This move comes on the back of further strengthening of the US dollar (orange line, first chart) and this will help fuel European equities as they, once again, benefit two-fold from a weaker currency and continue quantitative easing. Germany, being the biggest exporter, benefited most from this on Friday.

The ASX 200 (black line, second chart) will take another run at 6,000 today, but with very little data out today, recent selling resistance at this level might be enough to see our market continue trading at this high 5,900 level. From today's Global Markets matrix you can see that commodity markets were mostly stronger and the resources sector may benefit here. You can see that iron ore prices remain subdued, and the AFR quotes Joe Hockey this morning saying that he is contemplating an iron ore price of US$35 per tonne with regard to writing down budget revenue related to tax that would have otherwise come from exporter earnings - I kind of wish he didn't say that, I think the resource gods do have a sense of humour and what he probably thinks is a conservative estimate is nothing more than a guess about what could happen to prices in the short term.

The AUDUSD currency pair (orange line, second chart) isn't shaping up as a obvious trade at present. It's neither making higher highs or lower lows, and the market continues to price in a 70%+ chance of a cut to 2.00% official cash rates on 5 May.

Today‚Äôs charts are taken from the Rivkin Trader platform. 30,000 global instruments available to trade including FX, commodities, index, ETFs and international shares. Trade Australian share CFDs from just $8 or 0.10%. Click here or phone 1300 748 546 to open a Rivkin Trader account now.

Upcoming economic announcements: Bank of Japan March meeting minutes at 9:50am, Chinese trade balance at 9:50am, all Sydney time.


This article was written by Scott Schuberg, CEO of Rivkin Securities Pty Ltd. Enquiries can be made via info@rivkin.com.au or by phoning +612 8302 3600.

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