AUD/USD: 0.7875EUR/USD: 1.0945The dollar remains under pressure today, as the follow through from last week’s FOMC meeting continues to dominate the action on the back of the growing view that any Fed rate hike is likely to come later rather than sooner. Commodities rose, while equities are slightly lower. Today will be busy, with the focus to be on the global PMI's, and then followed later in the day by the important US CPI and Consumer Confidence figures. From the UK we get the CPI/PPI/RPI. Asia focus will be on the China HSBC flash Mfg PMI.
The Aud continues to make good gains while benefiting form the US$ weakness, and after an early dip to 0.7763 it has headed steadily higher to close the session at the day’s high of 0.7896.
The indicators look generally positive, although the 1 and 4 hour charts are becoming a little overstretched and direction today will depend on external data, beginning with the HSBC China Manufacturing PMI (exp 50.5).
Further gains would suggest a run towards 0.7900 and then to the 26 Feb 0.7912. Beyond here would see a bigger squeeze, with the potential to revisit the Fibo resistance at 0.8010 (61.8% of 0.8294/0.7559), although it is too early to think of it at this stage.
The downside will find bids at last week’s spike high at 0.7846 and then at the Fibo support at 0.7827 (23.6% of 0.7559/0.7891) ahead of 0.7800. Below here currently looks rather unlikely, but further bids would arrive at 0.7785 (38.2%).
Economic data highlights will include:
HSBC China Manufacturing PMI, China CB Leading Indicator , RBA Edey Speech.
Jim LanglandsFX Charts www.fxchartsdaily.com
