Currency Updates:
The Australian Dollar (AUD): Sell off continued due to poor Chinese Trade balance data that came through last weekend. Drop in copper and iron ore combined increased concerns on overall China economy which affected AUD/USD directly. A low of 0.9011 was touched, AUD currently still sitting above 0.90, a break below would give better confirmation on this pair. Employment data on Thursday could add further pressure on AUD/USD if it comes in poor.
AUD/USD: Tech suggest lower levels are due. AUD/USD failed to hold above the 21 week MA & 38.2 Fib and downard biased day/week RSI should give bears the edge. Bid remain at 0.8995/10 area where the 10 & 21 DMA reside, a break below would open a test for last week’s low of 0.8890.
EUR/USD: The pair managed to hold above 1.3880 but rallies were limited as ECB’s Noyer stated displeasure with the Euro’s rise. The pair slipped to a low of 1.3862. Resistance still at 1.3920-30 area, 4 hour pivot at 1.3850 and next support at 1.3815.
USD/JPY: Early sell off was seen is Asia but prices are eyeing a close above the cloud top at 103.10. Daily Tenkan & Kijun are bullish, the former by 102.48 and 50% of the 101.20- 103.77 rally. Japanese importers holding strongly by the Kijun at 102.26.
Looking Ahead – Economic Data (GMT)
• 00:30 AU NAB Business conditions Feb 4-prev
• 00:30 AU NAB business confidence Feb 8-prev
• 21:00 NZ Govt optg balance Jan -27.00%-prev
• 21:00 NZ Govt. monthly debt Jan 28.80%-prev
• 21:45 NZ Electronic Card Retail Sales mth Feb -0.50%-prev
• 21:45 NZ Electronic Card Retail Sales yr/ Feb 6.10%-prev
