Currency Updates:
The Australian Dollar (AUD): Europe session saw the pair was unable to push further below 0.8880, therefore, started short squeezing the bears and rallied to a high of 0.8946. Main focus will be the RBA today at 03:30GMT , with rate more likely to be on hold and statement similar to February’s, we cannot rule out any slightly dovish stance. With Capex data being poor, China PMI eight months low may bring concerns for Steven on overall Australia economy.
AUD/USD: The pair broke through 55 DMA but was unable to break through 0.8880/ 0.8890 as exporters heavily bid on it. Range trading still in play, a break through either 0.8880 or 0.9080 is needed for further action.
EUR/USD: After the pair dropped from concerns in Crimean, the pair was able to rally back to a high of 1.3792. However, ECB Draghi’s comment made the pair fell all the way down to low 1.3725 as he stated ” the longer inflation stays down, the greater the risk it won’t go back to 2%” The pair pierced the 200 hour MA and tested bids at levels from pre-EZ inflation data, little bounce was seen through the pair at the moment.
USD/JPY: Tensions from Ukraine made investors moved to the safe heaven, the Japanese Yen. However, losses was limited from this pair as enormous bids ahead of 101, which is the weekly Kijun line support. Real money sold at NY morning bounce to 101.55, but ran into 1.5+ yards of bids in the mid 101.30s, stalling around 101.30-40s
Looking Ahead – Economic Data (GMT)
• 01:30 JP Overtime pay Jan 4.60%-prev
• 00:30 AU Building approvals Jan f/c 2.00% -2.90%-prev
• 00:30 AU Private house approvals Jan -3.40%-prev
• 00:30 AU Current account deficit Q4 f/c 10.00b, 12.70b-prev
• 00:30 AU Net exports contribution Q4 f/c 0.80% 0.70%-prev
Looking Ahead – Events, Other Releases (GMT)
• 03:30 AU RBA cash rate Mar f/c 2.50%, 2.50%
