A green cheery day so far; a sequence of relatively good macroeconomic data and successful bond sales across the globe flipped yesterday's gloomy mood. Starting from Asia; China's factory sector expansion in January was the first push for markets today, at the same front; German manufacturing output rose as well, which was the first rise in seven months, while Euro zone CPI flash estimates a measure of inflation remained steady in January at 2.7% annual rate.
On the other hand, two successful bond sales from Germany and Portugal supported higher yielding assets, where Germany's borrowing costs remained near record lows, Germany sold 4.093 billion of 2022 (10-years) bunds at an average yield of 1.82% down from 1.93% at the previous action in January, the demand was good as well as it received 5.683 billion Euros of bids, also Portugal completed a successful auction selling a 1.5 billion Euros at the top of its target receiving 4.094 billion in bids at an average yield of 4.068% for 3-month T-bills and 4.463 on the 6-month bills.
Greek Finance Minister Evangelos Venizelos said talks betweenthe government and its creditors were one formal step away from an agreement.
The EUR/USD pair rallied after opening at 1.3082 to print a daily high at 1.3202 after bottoming at 1.3025, with this rebound the pair completed a test of the 50-days simple moving average after breaching it, which is currently around 1.3060. In general, the trading range among 1.3230-1.3000 remains intact, a breach with steady trading above 1.3230 shall push the pair out of this range to establish a higher range, and that may open the door towards 1.3500 level.
From the U.S., ADP employment change figure interrupted this series of cheerful data, as the report showed that the private sector added 170k jobs in January slightly below the mean expectation of 182k, while December's number was revised down to 292k from 325k.
The pair is currently correcting some of the recent gains. Intraday support and resistance levels are seen at 1.3200 followed by 1.3230 while to the downside the first support at 1.3150, 1.3115 followed by 1.3075.
One more major figure is to be released within minutes from now from the U.S. the ISM manufacturing index is expected show an expansion of 54.6 compared to 53.9 last month.
The Australian dollarvs the U.S. dollar maintained its rally after opening today at 1.0618. The pair breached the latest high at 1.0685 currently printing new highs around 1.0718 and pushing to the upside. The breached resistance should turn into support now at 1.0685 followed by 1.0650, while the pair is heading to a critical resistance at 1.0750.
The USD/JPY is attempting to pare some of its losses after testing 76.00 support level, however the pair maintains its short term downside trend. First resistance is seen at 76.20 and 76.40 followed by 76.65 to the downside steady trading below 76.00 could extend losses further towards 75.55. Taking into consideration that there are rumors that the central bank of Japan may be preparing a new intervene to weaken its currency.