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Aussie and JPY have been the main movers today

Tuesday, April 3, 2012 3:56 AM GMT

Good Morning ,

- Aussie and JPY have been the main movers today. AUD rallied on the ''no cut''
headline (1.0470), but sold off sharply again on the dovish headline. USDJPY
took out the well advised stops below 81.80, but probably more important is
the fact that Japan's Monetary base fell for the first time in 3 years,
political pressure on the BOJ will probably rise again.

- Stocks: Nikkei -0.67 %, Hang Seng +0.43 %, Shanghai Composite +0.47 %,
Dow Jones +0.40 % (highest close since 2007), Dow Jones +0.75 %

- Australia's central bank kept its benchmark interest rate unchanged as
expected and signaled a willingness to ease policy if weaker-than-expected
growth slows inflation further. "The board judged the pace of output growth
to be somewhat lower than earlier estimated, but also thought it prudent to
see forthcoming key data on prices to reassess its outlook for inflation,
before considering a further step to ease monetary policy," Governor Glenn
Stevens said today in a statement.

- China's non-manufacturing industries expanded in March on new orders in the
retail, information technology and software industries, a survey indicated.
The non-manufacturing purchasing managers' index was at 58 last month, the
National Bureau of Statistics and China Federation of Logistics and
Purchasing said. That compares with an adjusted reading of 57.3 for February.

- China's central bank Governor Zhou Xiaochuan said the U.S. Federal Reserve
has a responsibility to consider the global effects of its actions after
emerging-market economies suffered from capital inflows. Because the U.S.
dollar is the world's main reserve currency, the Fed "may have more
responsibility not only to consider the U.S. economy but also the global
economy," Zhou said. Zhou's comments reprise criticism of the U.S. from
emerging nations who complained that so-called quantitative easing was
sending unwanted cash into their economies, adding to inflation risks. Fed
Chairman Bernanke said last week the central bank will consider further
stimulus, even after upgrading its economic outlook March 13.

- Finance Minister Jun Azumi said that contributions by China and Japan to the
International Monetary Fund won't be "outstanding." IMF discussions should
include the U.S., he said. He was speaking to reporters in Tokyo today.

- Japan's liquidity supply dropped in March for the first time in more than
three years, fueling politicians' complaints that the central bank should be
doing more to end deflation. The monetary base fell 0.2 percent from a year
earlier after climbing 11.3 percent in the previous month, a Bank of Japan
report showed today. The average amount outstanding was 112.46 trillion yen.

- Federal Reserve Bank of Cleveland President Sandra Pianalto said the U.S.
economy is gradually improving and will probably grow at 2.5 percent this
year and around 3 percent next year.

- New Zealand has scope to cut interest rates should falling exports or
deteriorating global financial conditions threaten to derail a "modest"
economic recovery, the International Monetary Fund said.

- Britain's economy staged a modest rebound in the first three months of 2012,
helped by strong overseas demand, but the country still faces a tough path
back to healthy growth, the British Chambers of Commerce said on Tuesday. The
trade group said its latest quarterly economic survey of nearly 8,000
businesses pointed to 0.3 percent first quarter growth - a shade above
economists' consensus GBGDP. But growth for the rest of the year was likely
to disappoint, totalling just 0.6 percent for 2012 as a whole, it said. The
first quarter was nonetheless a recovery with the economy having contracted
by 0.3 percent in the last three months of 2011, prompting fears the UK might
slip into recession.

- Bank of Canada Governor Mark Carney, who has kept borrowing costs unchanged
since 2010, said the nation's economy has performed better than the central
bank forecast in recent months as conditions in global financial markets
improved and "external headwinds" abated.

- 1545 US ISM New York Mar
- 1600 US Factory Orders Feb
- 2000 US FOMC Minutes
- 2300 US Domestic/Total Vehicle Sales Mar
- 2205 Fed Williams
- 1100 Eurozone PPI Feb
- 1030 UK Construction PMI Mar

   (CET)

Have a good day !

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