Currency Updates:
The Australian Dollar (AUD): The pair had little movements during most of the NY session, consolidating in the 0.9140-55 range. After Draghi’s speech USD weakness permeated the market. AUD/USD ran light stops through 0.9160 and hit a high of 0.9175. Little data is due so the market may focus on RBA Governor Steven’s speech in Hong Kong today at 06:00 GMT on “The Economic Outlook”.
AUD/USD: The pair was set to finally close above the 200DMA. Overall the AUD is still in an uptrend, a full break of 0.9175 will keep the bulls run to a test of 0.9205/25 resistance. A break there sees little resistance until 0.9440/50
EUR/USD: The pair sank down to 1.3770 after ECB members’ statements and further pressure was added from Draghi’s speech, pushing the EUR to 1.3750. However, Draghi indicated that the bank is not ready to act yet without further evidences on deflation or disinflation. EUR/USD immediately erased most of the initial losses and pushed the pair up to 1.3847. Bulls are extent as recent attempts to clear 1.3750 failed and a bullish hammer forms on the daily chart.
USD/JPY: The pair is still playing in a tight range, bids in London tried to push the pair down to 102. However, Plosser’s comments and a nice pop in US Consumer Confidence helped USD/JPY to its 102.49 high by the daily Kijun and just above the cloud. The pair needs to break either 102 or 102.80 to provide better indication for traders.
Looking Ahead – Economic Data (GMT)
• 23:50 JP Corporate Svcs Price yy Feb 0.008-prev
Looking Ahead – Events, Other Releases (GMT)
• 22:30 AU RBA Deputy Governor Philip Lowe delivers opening remarks to the Centre for International Finance and Regulation conference in Sydney
• 00:30 AU RBA releases its Financial Stability Review report
