Currency Updates:
The Australian Dollar (AUD): The pair ignored the better than expected U.S Retail sales data and rallied to a high of 0.9104 as early risk sentiment was buoyant. However, real money seller jumped in as tensions in Ukraine once again increased. China banks are considering to cut loans to bloated industries by up to 20% which added pressure to the pair. Further pressure was from ECB Draghi which sank the EUR/USD and kept USD strong against most major currencies.
AUD/USD: The pair broke hourly support near 0.9040 and made to a low of 0.9013 at the 200 hour MA. USD weakness came in later in the day which had the pair recover to above 0.9025. Another long upper wick on the daily candle ahead of 200 DMA could be a warning sign for the bulls.
EUR/USD: The pair cleared the 1.3950 barrier and stops were run to a high of 1.3967. No further gains were seen as EUR/JPY slid off, ECB comment hit the pair hard and tensions in Ukraine. Intra day support at 1.3930/35.
USD/JPY: Investors moved to JPY as market focus on Crimea issue again. Support at 101.550, 101.35 and 101.15. Nikkei open will be the main focus for early Asia as an indication of the pair.
Looking Ahead – Economic Data (GMT)
• 21:30 NZ PMI Feb 56.2-prev
• 02:00 NZ RBNZ offshore holdings Feb 62.50%-prev
• 04:00 CN FDI Feb 16.1%-prev
• 04:30 JP Industrial output rev Jan 4.00%-prev
• 04:30 JP Capacity util idx chg mm Jan 2.20%-prev
