Welcome to a brand new week, month, and quarter as we step into April trading. The big news that is getting everyone jumpy today is the one from the oil market, where the Gulf States announced 1 mil bpd production cut. That has sent oil prices soaring with a gap higher to start the day.
That said, it's not quite a straightforward affair as WTI crude is still facing technical challenges in trying to keep above $80 as highlighted here.
The aussie will also be a focus point with the RBA coming up tomorrow. The OIS market is pricing in roughly 87% odds of no change to the cash rate, so just take note of that even if economist expectations are for a 25 bps rate hike.
Besides that, the dollar is holding firmer and that is seeing a bit of a pullback to the recent losses in particular against the euro and pound. USD/CAD is also an interesting one with the gap lower below its 100-day moving average, before coming back up now to hold just above that at around 1.3527 currently.
As the dollar recovers some poise, there might be opportunities to watch on retracement plays and gold is one I'd be eyeing keenly for a short-term play if we do see a firm drop below $1,940 on the daily chart.
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