Currency Updates:
The Australian Dollar (AUD): Early European session made an attempt to push the AUD towards the 200 hour MA but was unable to push through the stops above 0.8970. The pair drifted down lower in NY session and is now steady around 0.8940-60 levels. The direction of this pair is unsure at the moment and range still holds. Main focus today will be GDP data and Chinese PMI Services, with recent data from both economies being relatively poor, we may possibiliy see a downside break on this pair if it continues.
AUD/USD: With the direction being unsure, the pair is sitting between 55 DMA on the bottom and the 10 & 21 DMA on top. A break out may due from today’s data as mentioned above if it comes in poor.
EUR/USD: EUR/USD spiked to a high of 1.3782 after Putin stepped back from using military force on Ukraine and ordered troops back to base. Consolidation of recent gains is more likely to hold ahead of ECB and current trend remain bullish. If ECB fails to act and Ukraine tensions ease further then more likely to see the pair test 2013 high.
USD/JPY: Due to Putin’s statement, the pair rallied above 102, retook the Tenkan & Kijun at 102.01/102.10 but is now stalling at Friday’s high of 102.30, below the cloud base at 102.50. Market awaits for Nikkei opens in early Asia and will try to position themselves for Non-Farm Employment.
Looking Ahead – Economic Data (GMT)
• 0:30:00 AU GDP qq Q4 f/c 0.70%, 0.60%-prev
• 0:30:00 AU GDP yy Q4 f/c 2.50%, 2.30%-prev
• 0:30:00 AU GDP final cons Q4 0.60%-prev
• 0:30:00 AU GDP capital exp Q4 -0.20%-prev
• 0:30:00 AU GDP chain price idx Q4 0.10%-prev
• 1:45:00 CN HSBC SVCS PMI Feb 50.7-prev
