The Dollar has rebounded off 15 month lows, but fell to some late profit taking towards the end of the session. Sterling suffered as comments from the Bank of England appeared to have endorsed a weak pound. A weak currency could potentially spur exports. Australian employment numbers were the biggest event of the night coming in stronger and AUDUSD trading very firm on that.
- EURUSD 1.4978-1.5016. Quiet today as market seemed to run out of steam above 1.5000 handle. Resistance at 1.5020/1.5050 and support at 1.4920. Market looking for a break to find some new momentum.
- USDJPY 89.68-89.99 range in USDJPY. Also very quiet as 90 offered stiff resistance with more at 90.20/50 area. Support still at 89.50/89.00. Looks like traders happy to buy dips so could start to grind higher.
- AUDUSD 0.9287-0.9370 range. After stronger employment numbers AUD jumped from 0.9275/80 area to 0.9360 very quickly although strength in the numbers were mainly in the temp workers. Futures now pricing in +22 bps up from +18 yesterday. Resistance at 0.9400 although dips seem to be the play of the day as traders look at 0.9270/0.9250 support levels.
- It should be noted that the weekly oil inventory numbers are released later on today
- Tomorrow sees the release of International Trade Balance figures
President Obama makes his first state visit to Asia today. His 8 day trip will include a meeting with 18 fellow leaders, and a US-China summit.
Major Economic News
Initial Jobless Claims