Currency Updates:
The Australian Dollar (AUD): The pair consolidated close to 0.9250 area for most of Europe and NY sessions as 0.9250 capped gains. Commodity currencies, led by USD/CAD’s break below 1.1070, went broadly bid and AUD/USD cracked through the barrier. The pair rallied to a high of 0.9272 but failed to push higher as USD/JPY’s slide abated & offer touted 0.9275/85 loomed, making the pair dropped back to 0.9250.
AUD/USD: Another close above the 200 DMA and 50% of 0.9758-0.8660 has the bulls increase their confidence. A rally above 0.9285 resistances sit 0.9300/10 then the 61.8% Fib at 0.9339. Long term bulls will be eyeing their target to late November high at 0.9448.
EUR/USD: The pair slid to a low of 1.3728 before bouncing back up a little bit. US equity market added pressure on EUR again and the pair sat just above 1.3735 late in the day. Bids are touted in the 1.3705/25 area where the March 5 low, 55 DMA and 50% Fib of sentiment sour. Below 1.3700 would lead up to a test of 1.3640/70 where the Feb 27 low, 21 WMA & TL off the July low sit.
USD/JPY: Nikkei started rallying in late Asia session which helped the pair pushed up to 102.45, close to bottom of the cloud. As US stocks turned lower, bears jumped in, USD/JPY slipped back to early 102 area. Short yen crosses is still a crowded trade and a second dip below the 200 DMA in CNH/JPY is worth watching for as Asian carry trade unwind remains a possibility.
Looking Ahead – Economic Data (GMT)
• 23:30 JP All Household Spding YY Feb f/c 0.10%, 1.10%-prev
• 23:30 JP All household spending mm Feb f/c 0.80%, 1.60%-prev
• 23:30 JP CPI, Core Nationwide YY Feb f/c 1.30%, 1.30%-prev
• 23:30 JP CPI, Overall Nationwide Feb 1.40%-prev
• 23:30 JP CPI Core Tokyo YY Mar f/c 0.90%, 0.90%-prev
• 23:30 JP CPI, Overall Tokyo Mar 1.10%-prev
• 23:30 JP Jobs/Applicants Ratio Feb f/c 1.05, 1.04-prev
• 23:30 JP Unemployment Rate Feb f/c 3.70%, 3.70%-prev
• 23:50 JP Retail Sales YY Feb f/c 3.20%, 4.40%-prev
Looking Ahead – Events, Other Releases (GMT)
• 01:30 US FRB- Chicago President Charles Evans speaks on current economic conditions and monetary policy in Hong Kong
