Aussie remains the weakest major currency this week and would probably end the month as the second weakest just after Sterling. There are growing speculations that RBA would pull ahead the rate cut and lower interest rate to new record low of 2.00% next week. Depending the data, markets are pricing in 65-80% chance of such a rate cut, which compared to around 40% chance just two weeks ago. It's believed recent fresh selloff in commodity prices, in particular iron ore, is a trigger in the move. Tumbling commodity prices could force RBA to provide additional stimulus to interest rate sensitive sectors to speed up the rebalancing of the economy. EUR/AUD took out a minor resistance of 1.4136, which is seen as a sign of near term reversal. AUD/USD is also heading back for a test on 0.7559 support.
Elsewhere, US equities rebounded strongly as a week of important economic data started. DJIA breached 18000 handle and closed up 263.65 pts, or 1.49%, at 17976.31. S&P 500 rose 25.22 pts, or 1.22% at 2086.24. Asian markets are mixed though. Nikkei opened higher but reversed and is trading in red at the time of writing. Hang Seng is pressing 25000 level, up more than 0.5%. Gold dipped back to 1180 level while crude oil is back below 48. Dollar index is extending this week's recovery and is staying firm above 98 handle. Dollar is showing sign of strength against Aussie, Loonie and yen.
On the data front, New Zealand building permits dropped -6.3% mom in February, NBNZ business confidence rose to 35.8 in march. UK Gfk consumer sentiment rose to 4 in March. Eurozone CPI is a major focus in March and is expected to dropped to -0.4% yoy. Eurozone unemployment, German unemployment and UK GDP will also be released. Canadian GDP will be a focus in US session and is expected to show -0.2% mom contraction in January. US will release S&P Case Shiller house price, Chicago PMI and consumer confidence.