Currency Updates:
The Australian Dollar (AUD): The AUD posted new high after initial RBA statement and slid back to around 0.9250-60 area. USD/JPY made steady gains from 103.20 towards 103.75 aided to keep AUD/USD bounces limited. NY walked in with the pair near 0.9260 and early action dragged the AUD down to 0.9230. Exporters bids held the pair from 0.9220/30 zone and pushed the pair back to the opening level. Market awaits for the Oz retails sales and trade balance data.
AUD/USD: The longer-term trend remains up but daily techs and flash shows some warning for the pair. Another long wick forms on the daily candle after making a new high and the RSI is diverged at o/b levels. A break below 0.9215/20 would probably see the pair retest 200 DMA (0.9138).
EUR/USD: The initial spike in Europe saw the pair breached the 200 MA and briefly traded above 1.3800 and then spiked down below 1.3783 again but a quick rebound took hold. Asian offers into 1.3820 and other offers ahead of the 21 DMA capped the rally & 1.3790 was revisited after US PMI came in as forecasted. Market sentiment seems to be growing that the ECB won’t act. EUR/USD rally might persist unless the ECB takes action to stem the EUR’s rise.
USD/JPY: In the heavy yen selling market, EURJPY was the overall winner out of the yen crosses. USD/JPY chiming in following the weak Tankan Q2 outlook results published on the same day as Japan’s sales tax which climbed to 8% for 5%. Investors are now guessing that BOJ would launch QQE2 by some-time in July. The pair is now beyond 103.65, 61.8% of the 105.45-100.76 slide. March 7 high at 103.77 is next. Intra-day low held above 103.10 cloud top with talk of a yard of bids later at 103.20. Yellen’s dovish comments on Monday did more for stocks & risk than to depress Treasury yields.
Looking Ahead – Economic Data (GMT)
• 00:30 AU Building Approvals Feb f/c -2.50%, 6.80%-prev
• 00:30 AU Private House Approvals Feb 8.30%-prev
Looking Ahead – Events, Other Releases (GMT)
• No Significant Events
