Currency Updates:
AUD/USD The Post RBA minutes AUD/USD decline based at 0.9208 Wed. Initial support now 0.9214 lows Thrs/Fri, 0.9200 barrier, 200dma at 0.9173. Resistance at highs Fri/Thrs 0 .9250/74, 50dma 0 .9283, 10dma 0.9298, 21dma 0 .9304, 30dma 9310. Pair also well within daily cloud 0.9176/0.9307. 0.9270 expiry today and larger expiries Tues’ at 0.9240 (300M),0.9250-55 (700M), 0.9265 (205M).
EUR/USD Post IFO setback hit 1.3616 Fri and 1.3615 in Asia today. Early GFK consumer sentiment for June as expected 8.5. Pair up from 1.3620 to 45 in early London after Constancio said ECB speakers would not discuss policy today, although Draghi still went ahead in Portugal, but said nothing new. EZ equity gains to 6yr highs played their part in thin conditions, as did the Ukraine presidential election, with exit polls suggesting Poroshenko clear winner. Decent bids into option barriers at 1.3600 and offers noted 1.3650. Technical resistance at 1.3658 and 1.3688 (highs Thrs/Fri). 200dma is at 1.3639. Today/Tues sees around EUR 1bln 1.3620 option expiries.
USD/JPY Recovery from Wed’s 100.81 low peaked 102.03 Friday and posted 102.05 highs in Asia today. Setbacks have been limited however and lead many to position for another push higher targeting mid 102’s. However, resistance is strong with decent exporter offers through 102.20, daily highs 102.13/28 from May 15/14, 100dma 102.50 and the daily cloud between 102.35-67. Decent bids in to 101.50 and the 200dma at 101.33. EUR/JPY recovery from 138.15 lows Wed’ peaked 139.13 Thurs and yet to extend (139.10 today’s high).
– US Core Durable Goods Order
– ECB President Draghi Speaks
