Currency Updates:
The Australian Dollar (AUD): Sell off continued from Europe session to NY.The pair dropped below 0.90 to 0.8995 as copper slid and equity market set to open lower. However, no further loss was seen as exporter bids into 0.8980-90 support zone. AUD then slowly climbed higher to 0.9053-55. Little data due for today, investors will be focusing on how the CNY & CNH market level move.
AUD/USD: Asian sellers are touted above 0.91 and the 200 DMA & TL off April’s high should continue to weigh on the pair. However, a return above 0.91 cannot be ruled out. A break of 0.8980 or 0.9150 would give better indication for the pair, otherwise, range trades still hold.
EUR/USD: Bearish sentiment increased for EUR/USD as price closed below 21 DMA and bull channel base. Downward biased day/week RSIs add to the bearish outlook. If the pair fail to close near or above 1.3850 then it will more likely to test support at 1.3700. Consumer confidence will be due tomorrow, a poor data will give bears more confidence.
USD/JPY: Overnight, the pair had a very tight range of around 30-40 pips. The high of 102.55 kept the bulk of trading below the daily cloud base and exporter offer closer to 103. Further tight range plays could be seen for today due to lack of data.
Looking Ahead – Economic Data (GMT)
• 11:00 AU Conf Bd Leading Ind mm Jan 0.8%-prev
