Last Friday's selloff that was triggered by a worse than expected US Non Farm Payrolls numbers is continuing today as the EURUSD has broken below 1.1900, while the AUDUSD is near its 2010 lows. Typically, following a volatile Non Farm Payrolls release, the weekend is filled with plenty analysis on the number with many pros and cons. However, weekend media reports were decidedly negative towards the results, thus casting doubts towards the economic recovery of the world's largest recovery.
Big figures don't seem to intimidate the short sellers, as 1.3000, than 1.2500, and now 1.2000 were broken with ease. This morning we hit lows 1.1878 in the EURUSD which indicates buyers are stepping back and are in no rush to support the falling currency. As such, unless the pair trades back above 1.2000 and holds that figure, short term sentiment will stay very negative in the EURUSD.
The pair has support at 1.4400 which has repeatedly held the entire morning. However, based on its inability to trade above 1.4500 towards the end of last week's trading, there appear to be sellers ready to curb any rallies this morning. As such, without any impactful news today, we may see the GBPUSD trade range bound between the 1.4400 and 1.4500 figures.
The Aussie, Kiwi, and Loonie are all trading lower this morning against the dollar as last Friday's rout in commodities has taken its toll on them. Nonetheless, with risk aversion trading lending a bid to Gold, it may limit further downside Aussie and Loonie.