Overall, the currency markets waited for the Bank of Japan during the Asian session. Ahead of the press conference, the dollar gained some ground but the gains were relatively modest until now. Going forward, today’s calendar has some top tier releases both in the European and in the U.S. session, something that might help the market break the last day’s range of trading. Additionally, the Fed’s interest rate decision is expected during the U.S. session.
The Euro (Eur/Usd) advanced yesterday for the sixth consecutive day and managed to close near the 100-day moving average. Today was for the first time since early January since the pair approached the moving average. During the Asian session, the euro fell 30 pips.
The Pound (Gbp/Usd) formed a doji-star pattern, as the pair bounced off the 20-day moving average. The pound moved up in the Asian and in the U.S. sessions, but it found some strong selling orders during the European hours. In tonight’s Asian session, the pound declined 40 pips.
The Aussie (Aud/Usd) started the last day of trading caught between the 50 and the 100-day moving averages, and this affected the whole trading session. Until the end of the U.S. session, the aussie had only a 60-pip range and was unable to develop a decent trade.
The Australian MI leading index came in at a -0.2 percent month over month after a -0.4 percent decline was seen on the previous figures reading. This has raised speculation that the nation is expecting to enter its first recession since 1991. The economy shrank 0.5 percent in the fourth quarter of 2008. This was the first contraction seen in eight years as consumers limited spending and exports slowed.
The Cad (Usd/Cad) spent most of the time trying to break under the 1.2670 level, but the pair failed to pull a decisive move. On the upside, the cad saw a relatively strong swing area near the neutral pivot point (1.2710), where the 20-day moving average is located.
The Swissy (Usd/Chf) traded very volatile again, but in a small range during the last day of trading. The pair struggled for a second consecutive day to break under the 1.1800 support level, something that the swissy never succeeded. During the Asian trading hours, the pair rose 30 pips after it bounced off the support level.
The Yen (Usd/Yen) strengthened for the fourth consecutive day, and tried to break above the 99.00 resistance area. However, the pair lacked the necessary momentum to do so. In the Asian session, the yen fell 30 pips, as the market awaits the BoJ press conference.