Currency Updates:
The Australian Dollar (AUD): As Asia could not fully break the 0.9200 barrier, we saw short covering started as Europe session came in and pushed the pair to a high of 0.9245. USD/JPY support (103.80/85) hold and once again we saw another broad bid on the USD and sent the AUD back down to 0.9216 area. The AUD hugged the 200 hour MA for the rest of the session. Main focus for today will obviously be the U.S NFP data, a better than forecast number could see AUD clear 0.9200 barrier.
AUD/USD: A break of 0.9200 could make the pair run into 0.9120/50 sold support area. The 21 % 200 DMAS sit there as do the low from March 25 and the high from March 19. A break through those levels would see a quick run to sub 0.9000.
EUR/USD: The pair was sitting around 1.3760 before the ECB. The initial ECB statement sounded as no action will be taken just like last meeting, making the pair spike up to 1.3808. However, Draghi’s tone started to change and EUR slid below 1.3740 and hit a low of 1.3698. Once again, if U.S comes in with a strong data, we could see EUR slip below tech support of 1.3665/95, if cleared, then Feb low of 1.3477 could be tested again.
USD/JPY: Tight ranges in play before the NFP of 103.80-104.10. Major move for the yen crosses would be EUR/JPY, dropped from a high of 143.44 to below 50% Fib of 142.62. Key support for USD/JPY would be 103.10 and key resistance will be at 104.59. Tight ranges should still be in play before the NFP.
Looking Ahead – Economic Data (GMT)
– 1230GMT CAD Employment Change, Unemployment Rate
-1230GMT U.S Non-Farm Employment change & Unemployment Rate
