INTERNATIONAL CURRENCY BUZZ :
- Oil prices rallied to the highest levels of the session in European trade on Wednesday, after OPEC and non OPEC producers agreed to hold their next meeting on a plan to freeze output levels in Doha, Qatar on April 17, even without the attendance of Iran.On the ICE Futures Exchange in London, Brent oil for May delivery rose 52 cents, or 1.34%, to $39.26 by 09:05GMT, or 5:05AM ET.
- Gold futures struggled near the prior session’s two-week low in European trade on Wednesday, as investors looked ahead to the Federal Reserve’s decision due later in the day for fresh guidance on the future path of U.S. interest rates.Gold for April delivery on the Comex division of the New York Mercantile Exchange inched up $1.30, or 0.11%, to trade at $1,232.30 a troy ounce by 07:55GMT, or 3:55AM ET.
- Copper futures advanced during late morning trade in the domestic market on Wednesday after the Chinese Premier Li Keqiang stressed that policymakers will undertake innovative measures to keep economic growth in the world’s biggest metals consuming nation on track bolstering demand outlook.Keqiang assured at the end of annual policy meetings that China will find new drivers if growth drops out of its normal range.
ECONOMY NEWS :
- China’s Premier Li Keqiang defended the government’s economic policies on Wednesday, vowing there would be no mass layoffs and no hard landing for the world’s second-largest economy even as the government presses ahead with painful reforms.While conceding that downward pressure is increasing, Li and other top officials at the annual meeting of parliament this month have repeatedly tried to reassure jittery financial markets and China’s major trading partners that Beijing is able to manage the slowing economy.
- Australia on Wednesday walked back from a planned tax hike on foreign travelers who work in the country, following concerns from farmers that their supply of “backpacker labor” at harvest times may dry up and undermine Australia’s ambitions of being Asia’s delicatessen.Australian fruit exports are set to hit a record A$2.27 billion ($1.69 billion) next season, up 10 percent from the previous 2014/15 season, and backpackers on working holiday visas make up the bulk of fruit pickers during harvests.
- Japanese blue-chip firms on Wednesday announced wage hikes far below last year’s increases, a blow to “Abenomics ” stimulus policy at a time fears of a deepening global slowdown and jittery markets are denting business sentiment. Bellwether Toyota Motor Corp (T:7203) and some other leading manufacturers agreed to raise base pay for a third year in a row, under public pressure from Prime Minister Shinzo Abe.
TRADING STRATEGY :
- BUY GOLD ABOVE 1235 TARGET 1240 1246 SL 1229
- SELL GOLD BELOW 1225 TARGET 1220 1214 SL 1231