FX Update: The main currencies have continued to see little directional bias
FX Update: The main currencies have continued to see little directional bias for the most part, which has been seen against backdrop of buoyant global stock markets. The narrow trade-weighted USD index is near flat on the day so far, at 96.92, continuing a consolidation of declines seen last week. In equity markets, while the main U.S. indices turned lower yesterday, the S&P 500 remains within 1% of record highs, while India's NSE index rallied to a record high today. Chinese indices have also rallied strongly, with the CSI 300 showing a 2.2% gain in late PM trading, while Japan's Nikkei 225 closed with a comparatively modest 0.2% gain. Despite this dynamic, USD-JPY has continued to ply a narrow range around the 112.0 level, consolidating gains seen on Friday from levels around 111.00. EUR-USD has continued to narrowly orbit the 1.1300 level, consolidating recent gains from the six-week low at 1.1183 that was seen on April 2. Elsewhere, the Australian dollar took a knock following the release of the RBA minutes to the early April RBA meeting, which showed that rate cutes had been discussed. AUD-USD printed a two-session low of 0.7139. The Canadian dollar also came under pressure, which lifted USD-CAD to an 11-day high at 1.3396. This move was concomitant with a further weakening in oil prices, which have ebbed to one-week lows.