Currency Tech

EURUSD
R 2: 1.3428
R 1: 1.3369
CURRENT: 1.3213
S 1: 1.3096
S 2: 1.2989

USDJPY
R 2: 86.81
R 1: 86.00
CURRENT: 85.51
S 1: 85.00
S 2: 84.83

GBPUSD
R 2: 1.6171
R 1: 1.6067
CURRENT: 1.5927
S 1: 1.5802
S 2: 1.5713

AUDUSD
R 2: 0.9200
R 1: 0.9150
CURRENT: 0.9139
S 1: 0.9071
S 2: 0.8960

Market Brief

The US Dollar has been mixed during the Asian session this morning, marginally stronger against the majors but weaker against the Yen and the USDJPY pair has hit a new 2010 low of 85.33. With the appreciation of the Yen, Asian equities are trading largely in the red, led by the Nikkei which was down -204.67 pts. Exporter's stocks were trading lower and profit booking was taking place following a rally which took place two days prior. The Dow's weaker closing from last night (lower by -0.36%), triggered by a worse off pending home sales (MoM -2.6% act v 4.0% exp / YoY -20.1% act v -15.6% prev), contributed to Asian equities' weakness and have market participants mulling the ADP jobs number which might throw the recovery story into further doubt.

The ADP employment change, largely seen as a precursor to the more official Non-Farm payroll number on Friday, is expected to show an addition of 30K jobs.Earlier in the morning, data from Australia showed the housing sector got a nice boost ; the second quarter YOY house price index at 18.4% was well higher than expectations at 17.2%, but still lower than the (revised) previous reading of 19.7%. The QoQ reading also showed an increase to 3.1% from an expected figure of 2.0%. The Australian trade balance also released, reported yet another large increase in the trade surplus, showing a reading of 3539M v an 1800M expected reading. The combo of news helped the AUDUSD rally from 0.9110 towards 0.9150 levels.

Next up, we await the retail sales data from the Euro-zone followed by MBA mortgage applications and the ADP employment change reading.

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