Currency Tech

EURUSD
R 2: 1.2910
R 1: 1.2860
CURRENT: 1.2795
S 1: 1.2707
S 2: 1.2580

USDJPY
R 2: 85.05
R 1: 84.60
CURRENT: 84.23
S 1: 84.00
S 2: 83.67

GBPUSD
R 2: 1.5599
R 1: 1.5536
CURRENT: 1.5442
S 1: 1.5347
S 2: 1.5256

AUDUSD
R 2: 0.9200
R 1: 0.9120
CURRENT: 0.9076
S 1: 0.8938
S 2: 0.8900

Market Brief

Asian equity markets have opened on a positive note this morning following the strong gains posted in the US session yesterday on the back of increased risk seeking resulting from better than expected economic data out of the US. The ISM manufacturing index bettered analysts estimates at 56.3 actual v 52.8 exp while the ADP employment reading showed a drop in new jobs added, showing a decrease to -10k jobs.

We remain sceptical on the weaker ADP reading, as the number has been consistently undershooting the more official US department of labor estimates. The positive manufacturing data has kept risk seeking buoyed this morning, with the Nikkei posted gains of 0.62% and the Shanghai composite up 0.94% on the day.Earlier in the morning, data showed that Australia's trade surplus narrowed more than expected. The surplus declined to $1.89 billion AUD during the month of July from a revised $3.44 billion AUD in June.

The AUDUSD pair was weaker on the news, hitting an intraday low of 0.9055 while the AUDJPY pair hit a low of 76.14 on the day. Ahead we have a plethora of macroeconomic drivers including GDP readings from Switzerland and the Euro-zone region. The ECB rate decision due at 1145 GMT is expected to remain unchanged at 1.00%.

width=332

width=333