Currency Tech

EURUSD
R 2: 1.3250
R 1: 1.3000
CURRENT: 1.2795
S 1: 1.2680
S 2: 1.2540

USDJPY
R 2: 87.20
R 1: 86.80
CURRENT: 85.83
S 1: 85.00
S 2: 84.50

GBPUSD
R 2: 1.5800
R 1: 1.5680
CURRENT: 1.5594
S 1: 1.5480
S 2: 1.5350

AUDUSD
R 2: 0.9200
R 1: 0.9070
CURRENT: 0.8910
S 1: 0.8810
S 2: 0.8725

Market Brief

The JPY rose against all its major counterparts as signs the global economic recovery is faltering increased demand for safe-haven currencies. The EURUSD touched the lowest in nearly four weeks after a report showed Japan's GDP grew at a slower-than-expected pace and before data forecast to show German investor confidence fell. New Zealand's dollar dropped to a four-week low as Asian stocks extended a global slide in equities and as the services industry expanded at the slowest pace since October. Risk sentiment is weakening on increasing concerns about global growth, and this will weigh on higher-yielding currencies and induce some buying of the USD and the JPY.

The EURJPY declined to 109.42, USDJPY dropped to 85.79, EURUSD traded at 1.2755 after reaching 1.2734, the weakest since July 21. The USD Index rose 3.2% to 82.95 falling for the previous nine weeks, the longest losing period since December 2004.Japan's GDP expanded at an annualized 0.4% in Q2, lower than the market estimate of a gain of 2.3%. The German ZEW survey of investor and analyst expectations probably fell to 20 (prev. 21.2) according to a report scheduled for tomorrow. The USDJPY may fall to a record due to concerns over the health of the US economy, with current situation being seen as not appreciation of the JPY but weakness of the USD, reflecting concerns that the US economy may falter.

US retail sales rose in July by less than economists had forecast and core consumer prices grew at a rate that matched the smallest year-on-year gain in 44 years, according to reports on Friday. USDJPY touched a 15-year low last week before paring gains on speculation the government will sell the JPY to help exporters. The government officials and the BOJ may meet this week to discuss measures to address the JPY's strength with concerns being voiced over the JPY's recent appreciation.

The New Zealand and Australian currencies tumbled on concerns that slowing growth may weaken expectations for further rate increases in the two nations. The RBA's minutes on Tuesday and a speech by RBA Governor Glenn Stevens that evening provide the domestic focus for the Aussie, but global stock markets and risk appetite are key with the AUD's fall last week looking to be the start of a correction. AUDUSD traded at 0.8875 and NZDUSD was at 0.7016. New Zealand's services index fell to 50.5 (prev. 55.1) according to a report released earlier this morning.

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