Currency Updates:
The Australian Dollar (AUD): AUD and other high beta currencies rallied in London and NorAm trading as tensions in China and Crimea from last week failed to immediately pay off following the Crimean “referendum”. Safe heavens were sold, putting AUD/JPY in front. RBA minutes at 00:30GMT will provide better indication for the pair.
AUD/USD: Weekly chart showed room for the pair to run to 0.9209 (Kijun/50% Fib) after a weekly close above 38.2% of the Oct-Jan slide at 0.9079. 200-DMA is at 0.9151. AUD/NZD’s by 45-yr range base.
EUR/USD: Range trading for the pair 1.3887/1.3948. Resistance still holding at 1.3970 with plenty of supply 50/500. Italy’s PM visted with Merkel & floated a less austere budget plan that would raise the deficit to 2.9% of GDP.
USD/JPY: As tensions in Crimea cools off, safe heaven were sold, Nikkei rallied and all of the yen crosses made some come back from last week’s sell off, with AUD/JPY being the biggest winner. Current resistance for the pair is at 102.27 (Kijun), market will be focusing on the FOMC statement even though continuous tapering is expected.
Looking Ahead – Economic Data (GMT)
• 01:30 CN House Price Index yy Feb 9.6%
• 02:00 CN FDI (YTD) yy Feb 16.1%
Looking Ahead – Events, Other Releases (GMT)
• 12:30 AU RBA Meeting’s Minutes
