Gold is flat leading into the EU session

Gold and silver are mixed leading into the EU session this morning. Gold trades $15 above the $1700/oz level while silver is at $25.79/oz.

After inheriting a positive risk sentiment overnight the Aisa-Pac bourses are mixed. The ASX (-0.84%) and Shanghai Composite (-0.05%) trade in the red while the Nikkei 225 closed 0.03% higher.

In FX markets, the greenback is the strongest currency overnight. The dollar index trades 0.19% higher at 92.13, while USD/JPY moved 0.30% higher. The Japanese Yen was the main laggard in the main G6 currencies.

In the rest of the commodities markets, oil (--0.38%), copper (-0.09%) and natural gas (-0.59%) all trade lower in a tough session for the sector.

On the economic data front, Chinese inflation data for February hit -0.2% y/y vs the expected reading of -0.3%/, PPI printed higher at +1.7% y/y vs expectations of +1.5%.

Sticking with data, Australia's Westpac consumer confidence index for March hit +2.6% m/m (prior +1.9%), A decent rise.

On the central banking front, RBA Gov Lowe says would be comfortable with a lower AUD, but cannot say its overvalued. Lowe said a tight labour market is key to driving higher wage growth. The RBA are still considering whether to move from April 2024 bond to November 2024.

We also heard from SNB's Jordan, he said its too early to speak about any changes to interest rates in the long term, He added that the SNB has used around CHF 100bln intervening in the currency markets.

New US Treasury Secretary Janet Yellen has promised to get $350bn in aid to state, local governments as quickly as possible.

The $1.9trl stimulus bill passed a procedural hurdle and now this paves the way for a debate on Wednesday morning (US hours) that could last up to 2 hours, ending in a final vote.

Private oil survey data showed a large build in headline crude oil inventory. The weekly figure came in at 12.792M vs the expected reading of -0.833M, a massive miss.

Looking ahead to the rest of the session highlights include US CPI, BoC rate decision, weekly DoE's and comments from RBA's Lowe.
 

By Rajan Dhall

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