FOREX Trading Australia – Foreign Exchange Market Summary
Dollar
· Dollar needed something spectacular to stem its slide and it got just that, the Foreign Capital Inflows were the second highest ever with $91.5 Bn. Retails sales rose but came a little below expectations however TIC’s result helped the Dollar post a relief rally. Oil prices remain high with OPEC meeting eyed as well as the
Euro
· The Euro pulled back after breaking above 1.34 due to strong
Yen
· The Yen managed to hold off the Dollar rally thanks to its gains against the Euro. Uncertainty of the TIC’s outcome helped the Yen break back into the 104 region earlier in the day. It rallied by 125 points against the Euro going towards 139 as the market is focusing on the positives of the economy as it slowly but surely picks up. Decent Dollar bids exist in the 103.80-104.10 zone.
Pound
· The Pound continues to find good buying interest on any dips towards 1.91 with very strong support in the 1.9060-75 zone. RICS House Prices balance did not fall as much as expected but
Australian Dollar
· The Australian dollar slipped back below 0.79 this morning as Leading Index of Economic Activity came below expectations indicating stagnation in the economy’s direction. Nonetheless the market expects another rate hike next month with a weak sentiment around the Greenback giving the Aussie strong support in the 0.7840-55 zone.
Economic Data Released
|
GMT |
Release |
Region |
Previous |
Actual |
Outcome |
|
|
|
March ZEW Economic Sentiment survey |
|
35.9 |
36.3 |
Has increased on rise in export demand and pick up in domestic demand |
|
|
|
|
|
19.19 |
19.6 |
Slight increase as manufacturing sector remains steady. |
|
|
|
February Retail Sales less autos |
|
0.6% |
0.5% |
Slightly lower than expected but last two months were revised higher |
|
|
|
January TIC’s data |
|
$61.3 Bn |
$91.5Bn |
Much higher than expected as demand remains strong from overseas investors |
|
Upcoming Economic Releases
|
GMT |
Release |
Region |
Previous |
Forecast |
Expectation |
|
|
February Unemployment |
|
2.6% |
2.6% |
Rate should stay unchanged. |
|
|
February CPI m/m |
Euro-Zone |
-0.6% |
0.3% |
Should inch higher as oil and energy prices have spiked. |
|
|
February Industrial Production |
|
0.0% |
0.4% |
Boost in orders should help prop up production. |
FOREX Technical Analysis
EUR/USD – Yesterday’s low was 1.3295 and high was 1.3409.
The pair closed at 1.3307.
It has slipped back on profit taking and good
Key resistance is seen at 1.3425 followed by 1.3485 while support starts at 1.3270 followed by 1.3225.
USD/JPY – Yesterday’s low was 104.14 and high was 104.98.
The pair closed at 104.53.
The Yen continues to be held off from the 103.50-75 zone with strong Dollar bids in that region. Since sentiment is against the Greenback any foray above 105 should continue to attract selling interest. 105.50 holds very stiff resistance.
Key Resistance is seen at 105.25 followed by 105.75 while support starts at 104.05 followed by 103.50.
GBP/USD – Yesterday’s low was 1.9111 and high was 1.9253.
The pair closed at 1.9131.
The Pound has eased back and for now decent buying interest exists on dips below 1.91. 1.9050 acts as good support mark with a break below targets the strong support zone of 1.8975-1.90. On the upside resistance is strong around 1.9245 with very strong selling interest on any foray above 1.93.
Key Resistance is seen at 1.9245 followed by 1.9315 while support starts at 1.9105 followed by 1.9045.
Australian Dollar
AUD/USD – Yesterday’s low was 0.7869 and high was 0.7936.
The pair closed at 0.7892.
The Aussie has solid support above 0.7850 with good buying interest on any move towards 0.7875. A break below 0.7850 brings into focus the strong support zone of 0.7810-25. On the upside 0.7950 continues to hold mild resistance while option barriers are laced till 0.80 which continues to be the very stiff resistance mark.
Key Resistance is seen at 0.7955 followed by 0.7995 while support starts at 0.7845 followed by 0.7805.
Kunal ‘Kris’ Sharma
Forex Analyst
Australian Financial Services License 246566
Easy-Forex makes no recommendations as to the merits of any financial product referred to in this website, emails or its related websites and the information contained does not take into account your personal objectives, financial situation and needs. Therefore you should consider whether these products are appropriate in view of your objectives, financial situation and needs as well as considering the risks associated in dealing with those products
