US dollar is trading in range bound after Fed Chairman Ben Bernanke said in his speech that he expects an increase in commodity prices to create a transitory boost in U.S. inflation and that the central bank would act if he is proven incorrect. Euro remains firmly supported by expectation of rate hike from ECB on Thursday's meeting but there is no fresh stimulus for further rally. GBP Construction PMI came out better than expected at 56.4. Asian stock markets drops after Tokyo Electric Power Co. began dumping radioactive water from its crippled nuclear plant. AUD made a high of 1.0417 yesterday but fails to sustain above it and fell below it as Trade Balance data unexpectedly swung to a deficit in Feb for the first time in a year as disruptions from natural disasters cut mining shipments and higher fuel costs increases the imports. Meanwhile the main focus is on the RBA rate decision today which is expected to remain unchanged for another month. AUD AIG Services Index came out weaker this morning than expected. NZD NZIER Business Confidence came out weaker this morning at -27 vs 8 previously.
EUR/USD: price is currently trading (1.4200) slightly lower to the high set on the 4th of November- $1.4283 levels. This level should be broken for the uptrend to continue. EURINR (63.04): Exporters can cover partially at current levels for April exposure while importers can cover near 62.20 levels and further on dips. EUR/INR is likely to trade in the range of 62.75 -63.25 levels today. Short term: Slight bullish and Medium term: Bullish.
GBP/USD: Strong Support is seen near 1.6117(21 days EMA and Bollinger) followed by 1.6081 (55days EMA) and resistance is seen near 1.6171 (4hrly Upper Bollinger). GBP/INR (71.62) exporters should cover near 72.00 regions and short term importers can cover near 71.00 levels. GBPINR is likely to trade in the range of 71.40 to 72.00 levels. Term: Slight Bullish and Medium term: bullish. Today, Services PMI is expected weak at 52.5 vs 52.6 previously. USD/JPY: The pair is hovering near higher levels of 84.70. Resistance is seen near 84.70 levels (high of 01.04.2011). April month Yen Exporters are suggested to book exposure near 82.50 levels and below while Yen Importers can cover their exposure partially at 84.50-85 levels. Short term Bullish
AUD/USD: The pair took a slightly negative tone after making high of 1.0420. The pair continued the decline ahead of today's RBA rate announcement. The trade deficit came out at $212 million, compared to January's $1.433 billion surplus, as exports fell a seasonally adjusted 2% during the month, and imports rose by 5%. Immediate resistance comes at 1.0345 (4h 21days EMA) while Support comes at 1.0310(29.03.2011). Exporters are suggested to book exposure partially at current levels while Importers can cover their exposure near 1.0175 regions. Short Term: Bullish Medium term: Bullish.
Gold: The yellow metal is trading in range bound between 1410 -1440levels for last 7 trading days. Daily Stochastic is showing upside momentum with resistance seen near at 1446 areas. Support regions are strong at 1424 - 1427 followed by strong support at 1421 levels. Medium term: Bullish.
Dollar Index: The Dollar Index is trading below 76 levels. Resistance is at 76.20 (Daily 21days EMA) while immediate support is at 75.40 levels. Short Term: Bearish and Medium Term: Bullish (Jun -July 2011).