Currency Updates:
The Australian Dollar (AUD): The pair was lifted from near 0.8955 towards 0.8980 in Europe. Early dip was bought in NY session as ADP data was released below the forecast and prior releases were revised lower, pushed the AUD to a high of 0.8993. Retail sales and Trade balance will be released at 00:30GMT, a better than expected data would test the pair to go on a break of current resistance of 0.9000/10.
AUD/USD: The pair initially dropped below the 200 hour MA into intra-day support near 0.8960 as USD strength was shown across the board. However, this did not last long and AUD steadily climbed higher. Current resistance at 0.9000/10, a break above there will be testing previous resistances at 0.9050/60 and major resistance of 0.9080/0.91.
EUR/USD: The pair drove down to the support of 1.3700/10 support due to headline stating Russian forces seized two Ukranian missile units. Real money buyer recovered the slide to around 1.3730 in NY open. The pair held at 200 hour MA at 1.3725-40 range ahead of ECB. Traders may look to the 2016 staff projections for inflation, a lower projection may send EUR downwards.
USD/JPY: The pair managed to hold above 102 after weak ADP and ISM PMI data ahead of NFP report. Cloud resistance at 102.50 was tested earlier this morning, but soft US data and further worrisome in Ukraine pulled USD/JPY back to 102.25-35 area. More demand reported into the daily Kijun & 200 HMA by 102.10 and Tenkan by 102.
Looking Ahead – Economic Data (GMT)
• 23:50 JP Foreign bond investment w/e 598.8b-prev
• 23:50 JP Foreign invest JP stock w/e 75.8b-prev
• 00:30 AU Retail sales mm Jan f/c 0.50%, 0.50%-prev
• 00:30 AU Trade balance G&S (A$) Jan f/c 270m, 468m-prev
• 00:30 AU Goods/services imports Jan 2.00%-prev
• 00:30 AU Goods/services exports Jan 4.00%-prev
