Morning Update – 04/04/2017 – by Arjun Lakhanpal

Morning all.. Wall St had a quiet session and closed down just 0.16% but Asia had a rather more worrying session with the Nikkei down a further 1% as US bond yields took a dive to a 5 week low. US 10yr traded at 2.328% but had been a tad lower in Asia. In mainland China and Hong Kong were closed for holiday..This is dragging the dollar down but mainly against the JPY which sits precariously just above 110.00, which is seen as major support. The session low 110.36..AUD was also weaker and put a lot of pressure on AUDJPY after the RBA held rates unchanged as fully expected. They said global economic conditions continue to improve; reiterates AUD appreciation would complicate economic transition away from mining; expects pickup in underlying inflation to be gradual; recent data consistent with moderate growth; house px rising briskly in some mkts; China faces risks to med-term outlook. This statement seen as more dovish..  BoJ’s Kuroda: too early to discuss exit strategy from current mon pol; not targeting specific stock-px levels through ETF purchases; no comment on specific FX levels but this did little to hold USDJPY. Rand lower again as S&P rating agency lower South Africa rating to BB+ from BBB-; outlook neg. This morning we get UK Construction PMI and EU retail sales. Good luck..