Currency Updates:
The Australian Dollar (AUD): Europe session bought the brief dip on the recent weak CNH and CNY which pushed AUD to a high of 0.9044 before it slid back to 0.9030 in NY open. The pair was stuck in a relatively tight range but due to JPY strength, AUD/JPY was below 92.45 which dragged the AUD down to the lower end of day range, around 0.9015. Tomorrow’s Capex data would impact the AUD/USD as traders will be looking to see if the drop in mining investment can slowly pick up and China’s Manufacturing PMI (due over the weekend) will also affect the AUD/USD.
AUD/USD: The pair is still holding above the 10 DMA and consolidates near the Feb high. Traders are waiting for more data as mentioned above for further movements. Support 0.8920 and resistance at 0.9080.
EUR/USD: Overnight movements were still within the range of 1.3685-1.3780. Trader awaits for the EZ inflation report that will be released on Friday.
GBP/USD: Again, this pair remains within the range of 1.66-1.6740. Early gains from this pair was due to BOE’s comment that UK could increase interest rate in Q2 2015 and also merging/options activities which holds the cable in the higher daily range.
USD/JPY: Weak US stock market opening and soft data got the pair in a sell off mode into the NY options cut. The daily cloud base at 102.19 and the Tenkan 102.09. Market was still unable to break out of either top or bottom range, the large amount of Japanese data due on Friday and some U.S data hopefully could give us a more clear picture on the pair.
Looking Ahead – Economic Data (GMT)
• 00:30 AU Construction work done Q4 f/c 0.70%, 2.70% -prev
