The dollar headed for its biggest monthly gain since July on Tuesday though Fed Chair Powell signalled no rush to raise interest rates. The yuan moved sideways on the latest economic data.
China's official gauge for manufacturing activity climbed more than expected in March to mark its best performance in a year and snapping two months of declines, as export orders showed strong momentum.
In the first two months of this year, exports surged 21.8% from a year earlier, sharply beating expectations, as robust demand from Southeast Asia and Europe more than offset the slump in US-bound shipments.
Meanwhile, industrial profits surged, driven by companies making unmanned aerial vehicles and semiconductors. The strong momentum is currently at stake though, as tensions in the Middle East push up input costs.
China raised the ceiling prices for retail gasoline and diesel earlier this week. Analysts at Societe Generale said prolonged supply disruption could push oil prices as high as $150 in April.
Some economists think that higher energy prices could help shake China out of its deflationary funk. The country's PPI fell in February, but the contraction narrowed for a 3rd consecutive month.
The yuan peaked around 6.8260 per dollar last month, before dropping along with other EM currencies. A push above 6.9100 per dollar seems likely, with 50 SMA underpinning the uptrend.
Asset recap
As of market close on 30 March, among EBC major products, ServiceNow shares led gains. The company seemed oversold after its market cap decreased by over 40% over the past six months.
Sysco announced it would buy catering supplier Jetro Restaurant Depot in a $29 billion deal, including debt, expanding the firm's reach among price-conscious independent restaurants.
Trump said that the US will "completely" obliterate Iran's electric generating plants, oil wells and Kharg Island if the Strait of Hormuz is not "immediately" reopened and a peace deal is not reached "shortly."
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