Overall, the Sunday session started again with traders looking to shed risk and buy the safety of the U.S. dollar. It appears this has been the trend over the last few days of trading, and the market appears quite happy to carry it through. The European and the U.S. calendars remain quiet, as there are no important reports scheduled.
The Euro (Eur/Usd) fell 65 pips during the early part of the Asian session, and broke below the low reached on Friday. Over the last five days of trading, the euro lost 400 pips, as the currency markets remain driven by risk.
The Pound (Gbp/Usd) fell 60 pips during the Sunday open, as the market was again driven by risk-aversion. Moreover, the pair already broke below Friday’s low, but now is heading towards an older 4h support area. The pound’s calendar is loaded with top-tier releases this week.
The Aussie (Aud/Usd) saw a number of strong selling orders during the Sunday session, which helped the pair break below the support trend-line. This happened after the trend-line held for more then a month, helping the pair reach the highest value since November 2008.
Producer prices in Australia decreased by 0.4% percent in the first quarter of 2009. This was mainly due to price decreases in the building construction (-1.6%), petroleum refining (-8.9%) and dairy product manufacturing (-4.9%). This was partially offset by price increase seen in industrial machinery and equipment manufacturing (+5.4%) and tobacco product manufacturing (+12.8%).
The Cad (Usd/Cad) gained 40 pips since the new trading week started. The cad is now testing the same resistance area where it topped on Friday, even though the pair saw strong momentum and volume. On Tuesday, the Bank of Canada is expected to maintain the monetary policy at 0.50%.
The Swissy (Usd/Chf) is heading towards its fifth consecutive day of gains, tonight. Additionally, the pair reached a one-month high from the strong gains experienced on Friday, when the swissy rose 180 pips and broke above an important resistance level.
The Yen (Usd/Yen) saw weak momentum during the Sunday open as the pair is trapped between the 20 and the 200-day simple moving averages. Over the last few days of trading, the yen traded within the same 130-pip range, unable to develop a decent trend.