Currency Updates:
The Australian Dollar (AUD): Offers ahead of 0.9300-0.9310, both Europe and NY session continued to add pressure for the pair. Soft equity futures and some short covering in USD against emerging currencies weighed on AUD and saw the pair slide to a low of 0.9254. With little major data due until Thursday Oz jobs data, AUD/USD may hold the 0.9200/0.9310 range. March NAB business confidence is due later, a weak data may press the AUD/USD lower as some weak bulls might unwind ahead of the jobs data.
AUD/USD: Support remains in the 0.9200/20 area with reports that large stops are building below that zone. For now, 0.9200/0.9310 range still in play, market may need to wait for the jobs number to come out for further confirmation on this pair.
EUR/USD: Overnight reaction was limited however, short covering started. Technical support in the 1.3680/00 zone and fading effects of Draghi’s ECB presser seemed to inspire the covering. Decent stops above 1.3750 were safe from last night, with little data due, market awaits for the Wednesday FOMC minutes.
USD/JPY: The pair tested support of 102.95 in Asia yesterday, the remainder of the sessions were above 103 area with a tight range in play 102.90-103.35. The pair remained relatively heavy as it was unable to break previous day’s high. Today we will have the BOJ meeting, market awaits for any signals regarding to the impact of the sales tax hike and a possible QQE talk. Support is at 102.95, 50% FIb & Tenkan followed by the Kijun & 61.8% at 102.63/66.
Looking Ahead – Economic Data (GMT)
• 23:50 JP Current Account NSA JPY Feb f/c 628.0b, -1589.0b-prev
• 5:00 JP Economy Watchers Poll Mar 53-prev
• 01:30 AU NAB Business Conditions Mar 0-prev
• 01:30 AU NAB Business Confidence Mar 7-prev
• 22:00 NZ NZIER Confidence Q1 52.00%-prev
• 22:00 NZ NZIER QSBO Capacity Q1 90.20%-prev
• 22:00 NZ Govt Optg Balance Feb -149.50%-prev
• 22:00 NZ Govt. Monthly Debt Feb 27.70%-prev
Looking Ahead – Events, Other Releases (GMT)
• : JP Bank of Japan Monetary Policy Meeting (Day 2)
