Currency Tech

EURUSD
R 2: 1.3428
R 1: 1.3369
CURRENT: 1.3160
S 1: 1.3096
S 2: 1.2989

USDJPY
R 2: 87.20
R 1: 86.80
CURRENT: 86.20
S 1: 85.30
S 2: 84.83

GBPUSD
R 2: 1.6171
R 1: 1.6067
CURRENT: 1.5900
S 1: 1.5802
S 2: 1.5713

AUDUSD
R 2: 0.9325
R 1: 0.9200
CURRENT: 0.9156
S 1: 0.9071
S 2: 0.8960

Market Brief

New Zealand's dollar fell against all its major counterparts after a report showed the jobless rate rose more than economists forecast, signaling the RBNZ will slow the pace of interest rate increases. The NZDUSD fell 0.8% to 0.7287 while NZDJPY dropped 1% to 62.75 and AUDUSD declined 0.2% to 0.9146 while AUDJPY lost 0.4% to 78.76. RBNZ Governor Alan Bollard said that deteriorating growth may slow the pace of rate increases, while raising the benchmark to 3% as unemployment rate rose to 6.8% in Q2 (prev. 6%, est. 6.2%).

Australia's currency declined after China's banking regulator told lenders last month to do a new round of stress tests to assess the impact of residential property prices falling as much as 60% from previous tests which were taking 30% drop in prices in their test results, also causing investments back into the Yen over these concerns.The yen rose against higher-yielding currencies as speculation stress tests on Chinese banks will reveal loan losses boosted demand for safer assets.

The EURJPY declined to 113.13 while USDJPY declined 0.3% to 86.02 after reaching 85.33 yesterday, the weakest since Nov. 27, EURUSD was at 1.3150 and USDCHF traded at 1.0532 after it rose to 1.0555, the strongest since July 29. The USDCHF traded near a one-week high before a U.S. report today will show initial jobless claims fell to 455,000 last week from 457,000 the previous period, easing speculation the Federal Reserve will introduce new stimulus measures.

The greenback gained versus 13 of the 16 major currencies before a report tomorrow that may show private employers added jobs for a seventh month in July, Non-farm payrolls are released showing some improvement from the last month and ECB and BOE will both keep their benchmark rates at record low levels today.

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