Currency Tech

EURUSD R 2: 1.3280 R 1: 1.3108 CURRENT: 1.2896 S 1: 1.2816 S 2: 1.2744

USDJPY R 2: 88.00 R 1: 87.33 CURRENT: 86.64 S 1: 86.27 S 2: 85.87

GBPUSD R 2: 1.5500 R 1: 1.5392 CURRENT: 1.5287 S 1: 1.5141 S 2: 1.5031

AUDUSD R 2: 0.8860 R 1: 0.8783 CURRENT: 0.8682 S 1: 0.8583 S 2: 0.8447

Market Brief

With the Japanese markets closed for a national holiday, currencies haven't been able to extend on Friday's large selloff and have been largely stable this morning with a slight US dollar bias. The Greenback's performance of late has raised questions about it's status as a safe-haven currency and similarly the positive correlation seen between the major equity markets and pairs such as the EURUSD have also raised some doubts. One thing for certain has been the performance of the JPY amidst the heightened levels of risk aversion. Following Friday's brunt of bad news - lower US consumer confidence, weaker than estimated revenue reports from GE and banking giants BoA & Citigroup - Yen crosses have greatly prospered, particularly the USDJPY which has been on an absolute heater since Wednesday of last week, shedding more than three hundred points in its march towards 86 levels. Amidst all the sluggish sentiment in the market, USDJPY traders will be eyeing that November 2009 low of 84.83.The Aussie and Kiwi pairs have also been slightly weaker this morning and should remain in a mixed yet stable range in the build up to tomorrow's release of the RBA's meeting minutes.