Currency Updates:
The Australian Dollar (AUD): Europe bought the dip on the pair near 0.9055/65, bulls kept the pressure and further pushed the AUD to a high of 0.9135. AUD cross buying especially vsing the EUR and GBP from macro & momentum names emerged.
AUD/USD: Bulls remains in game for now, targeting 0.9150, a break would form a new up trend. Upward biased day/week RSI and widening spreads may aid in bulls taking complete hold of AUD. A break above the current resistance zone opens a test of 0.9205/15 (50% Fib of 0.9758-0.8660, late Nov high).
EUR/USD: German ZEW had the pair dropped to a low of 1.3880. However, Putin’s speech was considered as positive and spiked the yen crosses immediately. EUR/JPY rallied from below 140.80 to 141-81 in no time but was unable to break 141.95 resistance. Reports showed Ukrainian military base being fired upon erased much of EUR’s early gains.
USD/JPY: Crimea issue had the yen crosses doing runs in both ways. Big range trades are still in play 101.20-101.90. Downside play should be limited as market awaits Japanese data and FOMC, unless 101.20 breaks.
Looking Ahead – Economic Data (GMT)
• 21:45 NZ Current account – qtrly Q4 f/c -1.409b, -4.780b-prev
• 21:45 NZ Current account- annual Q4 f/c -7.41b, -8.77b-prev
• 21:45 NZ C/A balance to GDP Q4 f/c -3.30%, -4.10%-prev
• 23:30 JP Reuters Tankan DI Mar 18-prev
• 23:50 JP Exports yy Feb f/c 12.40%, 9.50%-prev
• 23:50 JP Imports yy Feb f/c 7.40%, 25.00%-prev
• 23:50 JP Trade balance total yen Feb f/c -590.0b, -2790.0b-prev
