Currency Updates:
The Australian Dollar (AUD): The pair rallied higher after Governor Steven’s speech in Hong Kong on the economy outlook. Bulls continued to push in NY session to a high of 0.9245. No further gains were seen as 0.9250 barrier holds and yen crosses weakness caused AUD/JPY drop towards 93.95/00 support, making a slight drop in the AUD to 0.9220 area. Little data is due for the Oz or Asia region so movements in AUD could be limited.
AUD/USD: For now, bulls hold the reigns as the pair closed above 200 DMA for the second consecutive day, holding above the 50% Fib of 0.9758-0.8660 and day/week RSI provide positive momentum. Bulls may have their sight set on 0.9445/50 (late Nov high).
EUR/USD: The 21 DMA capped any overnight rally and widening yield spreads weighed on the pair for Europe’s morning. A quick spike in NY session as traders bought the dip in 1.3770/80 area to 1.3810 but did not make further gains. Choppy action in broad 1.3750-1.3900 range should hold as little data due until Friday German March CPI report. A weak result will once again increase bets on ECB to act.
USD/JPY: USD/JPY and EUR/JPY were in a tight range sleeping mode at the start until large 10ET expires (4billion between 102/40) and the S&Ps/Nikkei ran into a spot of bother after the 5-years Tsy auction resulted in a decent drop in yield. EUR/JPY dropped below this week’s lows to the 55-DMA and 61.8% support in the 140.67-70 range, but a close below those supports is yet to be confirmed. Further action could be seen as we are close to end of the month. For now, market awaits for Nikkei open.
Looking Ahead – Economic Data (GMT)
• 21:45 NZ Trade – Imports Feb f/c 3.78b, 3.77b-prev
• 21:45 NZ Trade Balance MM Feb f/c 600.0m, 306.0m-prev
• 21:45 NZ Trade Balance YY Feb f/c 0.49b, 0.31b-prev
• 21:45 NZ Trade – Exports Feb f/c 4.44b, 4.08b-prev
• 23:50 JP Foreign Bond Investment w/e 143.1b-prev
• 23:50 JP Foreign Invest JP Stock w/e -1092.4b-prev
Looking Ahead – Events, Other Releases (GMT)
• No Significant Events
