Currency Updates:
The Australian Dollar (AUD): Initial China PMI caused the pair to drop and dips were bought through out Europe and NY. 0.9120/30 was capped at the start but rally continued as broad based USD selling ignited by EUR/USD’s stop loss run spike higher. 0.9150 was hit but gains were erased as USD bulls emerged late in the NY session.
AUD/USD: AUD pierced the 200 DMA (0.9139) at the start but slid beneath it again and sat above 0.9125 late in the day. Bulls continue to gain confidence and tech bolster their case. Day/week RSIs are biased up. Long lower wicks on recent daily candles also suggest higher levels are due. A clean break above the 200 DMA puts 0.9205/25 resistance in play. Beyond that zone there will be little resistance until 0.9450.
EUR/USD: Bears pushed the pair to 1.3760 but no further drop were seen. A massive run from just below 1.3800 took hold, 1.3820/25 stops were run and the pair quickly spiked up to 1.3877. Bulls are back in the game as the pair breaks above the 21 DMA into the old bull channel off the Feb low. If 1.3880 resistances get cleared, a retest of the March high looks likely.
USD/JPY: USD/JPY’s three day range were tested in London & NorAm trading. The pair remains heavy toward the NYSE close, probing the 100-HMA and hourly cloud support just above the well-touted bids between 102 and 102.10.
Looking Ahead – Economic Data (GMT)
• 05:00 JP Small Business Confidence Mar 50.6
Looking Ahead – Events, Other Releases (GMT)
• No Significant Events
