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Global Equities Spoil the USD Rally, For Now

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Forex Market News

Not a great deal to report after yesterday’s disappointment from the RBA ! Although the spike higher in the AUD in the preceding minute before the official release at 2.30pm has sparked some growing concern.

The USD looked good at the start of the week but has once again stalled at the top end of recent ranges. Equity markets overnight traded on the downside which helped stall the USD rally. Despite some second tier positive European data, the EUR/USD failed to make any significant ground, stalling just above 1.1200 and is continuing to look vulnerable. For those that monitor the USD Index, we are testing recent highs. UST 10yr yields continue their positive run adding further support to the USD. OIL has also gained some positive footing overnight but has stalled mid-range, giving us little direction.

AUD Q4 GDP came in slightly weaker than expected but after the previous qtr revised higher, net net zero effect. ( +0.5% V 0.6%E).

Today’s Data Coming Up : – UK Services PMI, BOC Rate Stmt, US ISM Non-Manuf PMI, Crude Oil Invent., US Beige Book.

AUD/USD – Still trading within recent ranges and a weaker headline GDP number only adds to downside pressure. Sell at 0.7850. Look for downside test of 0.7750 then 0.7720.
Resistance: 0.7850
Support: 0.7750, 0.7720

EUR/USD – Lower highs and lower lows. Pressure continuing to build downside.
Resistance: 1.1260
Support: 1.1100

USD/JPY – An outside reversal bar but tested, held and closed above short term fibo support at 119.44. I’m long and looking to stay that way into Friday night !
Resistance: 120.50, 120.70
Support: 119.45, 119.20
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