Currency Updates:
The Australian Dollar (AUD): The pair slid back down below 0.90 in NY’s open on concerns of a spike higher in USD/CNH. As USD started to strengthen against most currencies which added extra weight on the AUD reflecting the weak data shown from last week. Overall sentiment is now slowly forming on the downside, however, a break of 0.8920 is still needed for it to confirm.
AUD/USD: AUD/USD failed to stay above the 10DMA for the second consecutive day, bulls are slowly exiting in early European session. Bearish daily and weekly RSI supports the view of a downtrend forming. Resistance still at 0.9085/0.9100.
EUR/USD: Bulls are still holding up as the pair held above daily cloud and 10 DMA. A break of 1.3775 and 1.38 would push up another rally. Daily RSI supports the view but yield spreads are not intune. Yield differentials need to be reduced for a possible test of late December highs.
GBP/USD: Resistance at 1.6740 and 1.6760. Support at 1.6540.
USD/JPY: USD/JPY tested the daily Kijun at 102.80 but was unable to break through as market still sees continuous poor data from U.S even though FED tried to regain confidence on the overall U.S economy. Range trades still in play, need to break 102.80-85 for a new rally.
EUR/JPY: This pair rallied above its 55-DMA by 141.26 on the Ukraine agreement but will more likely to play in range if USD/JPY does not break new levels. Resistance at 141.75, Pivot at 140 and support at 139.50.
Looking Ahead – Economic Data (GMT)
• 1:30 CN China house prices Jan 9.90%-prev
