Asian markets are trading generally lower as dragged down by Chinese stocks. The China SSE (LON:SSE) composite is losing -2.9% or -84pts at the time of writing. It's noted that investors were dissatisfied with the far worse than expected trade balance data released yesterday, with exports contracting the most in over six years. Nikkei is down -1.3%, or -210 pts while Hong Kong HSI is down -120 pts or -0.6%. In the currency markets, Dollar is regaining some ground against other major currencies while Yen is lifted on receding risk appetite. Aussie continues to decouple from other commodity currencies and stay firm. Canadian dollar is the second weakest major currency as markets await Bank of Canada rate decision.
BoC is widely expected to keep interest rate unchanged at 0.50% today. Also, Stephen Poloz is expected to maintain a neutral stance in the accompanying statement. Also, it's expected there the federal budget to be released later in the month on March 22 would reveal more fiscal stimulus measures. And that would afford BoC the space for standing on the sideline. USD/CAD dropped sharply since early this year as markets pared bet on Fed hike and on stabilizing oil prices. While WTI is still extending recent rebound to as high as 38.39 this week, Canadian dollar is losing some momentum. USD/CAD is possibly turning into consolidation on oversold condition.
Elsewhere, Australia home loans dropped -3.9% in January, Westpac consumer confidence dropped -2.2% in March. Japan M2 rose 3.1% yoy in February. UK industrial and manufacturing productions will be the main focus in European session and NIESR GDP estimate will be released. US will release wholesale inventories.