CNH: USD/CNH Steady, Implied Vol Close To Multi Month Lows, CNH/JPY Recovers

• RES 3: 97.190 - High May 5 2023
• RES 2: 96.932 - 76.4% of Mar-Nov ‘23 bear leg
• RES 1: 96.860 - High Apr 07
• PRICE: 96.760 @ 16:06 GMT Apr 22
• SUP 1: 95.900 - Low Jan 14 
• SUP 2: 95.760 - Low 14 Nov ‘24
• SUP 3: 95.480 - Low Jan 11 2023 and a major support 

Aussie 3-yr futures continue to circle just below recent contract highs, having cleared resistance on the continuation contract. The rally has taken out resistance at 96.730, the Sep 17 ‘24 high. On the downside, any reversal lower from current levels would signal a resumption of a downtrend. A deeper sell-off would refocus attention on 95.760, the 14 Nov ‘24 low.

A press conference has just concluded at the White House where US President Trump spoke on a number of issues. Most prominent were comments Trump made on Fed Chair Powell and the tariff/trade outlook. 

• On the Fed outlook Trump stated that now was the perfect time to lower rates, as Trump spoke about the lower food and energy price backdrop since he took office.
• Trump added that he wants Fed Chair Powell not to be too late in terms of lower rates, but that if he doesn't it isn't the end. Trump added he no intention of firing Fed Chair Powell. This has been speculated recently given Trump remarks around Powell's performance.
• On tariffs Trump stated he won't play hard ball with China and that while tariffs on China are currently 145%, the final number won't be near that number (per BBG).
• If countries invest in the US they won't pay tariffs Trump added and that China and other countries will make a deal with the US, or the US will set the deal.
• When asked about the economic impact of tariffs said the whole economy will benefit given surging investment into the US.