Currency Updates:
The Australian Dollar (AUD): The pair initially played in a tight range above 0.9100. The hawkish FOMC statement pushed the AUD down to 0.9060/65 support, bears continued jumping in on a strong USD basis and pushed the pair to a low of 0.9020. No major Oz data coming out this week, however, if U.S home sales and unemployment claim comes in strong tonight, AUD could test the 0.8990/90 level.
AUD/USD: AUD bears pierced the 200 hour MA, hitting a low of 0.9020. Little bounce was seen. Bears are fighting back as daily and weekly RSIs diverge on the new trend high set overnight and the pair is back below 21 week MA. Immediate support comes from the 21 DMA and March 13 low.
EUR/USD: Key support near 1.3830 was breached and stop below it were run. The pair continued to test near the 21 DMA (1.3805) as it hit a low of 1.3810. A break below the 21 DMA would increase the chance of testing 1.3700 levels.
USD/JPY: Four days of heavy support on the pair around 101.20-30 range finished off with a strong rally after the FOMC announcement. The pair rallied past the daily Tenkan, Kijun, cloud base & 50% Fibo grouped by 102.50, even as stocks struggled a bit with the notion of higher US rates. The pair will now try and test the 102.80-90 resistance, a break would make the pair go back to early March high.
Looking Ahead – Economic Data (GMT)
• 23:50 JP Foreign bond investment w/e -618.5b-prev
• 23:50 JP Foreign invest JP stock w/e 383.8b-prev
• 21:45 NZD GDP production qq Q4 f/c 0.90%, 1.40%-prev
• 21:45 NZD GDP – Annl-avg, prod-bas Q4 f/c 0.03, 2.30%-prev
• 21:45 NZD GDP – annual Q4 f/c 0.03, 3.50%-prev
Looking Ahead – Events, Other Releases (GMT)
• 07:15 JP BOJ Gov Kuroda speaks at Japan Chamber of Commerce & Industry (Tokyo)
