Currency Updates:
The Australian Dollar (AUD): The pair hit daily high of 0.9050 before Europe sold off the rally to 0.9015-25. Copper broke below $3.00 which increased market concerns that China’s corporate credit issues would be worsening. 0.90 broke and AUD hit to a low of 0.8965, little bounce was seen. Westpac consumer sentiment is due today at 23:30GMT, a weak data could lead AUD to test support of 0.8930.
AUD/USD: A test of 0.8920/35 support ( 55 DMA, cloud top) looks likely if risk sentiments remains negative. If breaks, then last week’s low of 0.8891 should be tested. However, with Oz employment data coming out tomorrow, it should be hard to test that level yet but if the data disappoints, we could see AUD/USD see January low tested.
EUR/USD: Long upper & lower wicks on recent daily candlesticks suggest consolidation is taking hold. With little data due until Thursday and Friday, ranges may hold.
USD/JPY: The pair fell below the thin daily cloud that it finally closed above on Monday. Nikkei failed to make further gains and data from U.S was lower than forecast. Tenkan and 50% Fibo by 102.50 are next USD/JPY props.
Looking Ahead – Economic Data (GMT)
• 00:30 AU Housing finance Jan f/c -0.01, -1.90%-prev
• 00:30 AU Invest housing finance Jan 2.90%-prev
• 23:30 AU Consumer sentiment Mar -3.00%-prev
• 23:50 JP Corp goods price mm Feb f/c 0.20%, 0.10%-prev
• 23:50 JP Corp goods price yy Feb f/c 0.02, 2.40%-prev
• 23:50 JP Business survey index Q1 9.7-prev
• 05:00 JP Consumer confid. index Feb 40.5-prev
