AUD/USD: 0.8080EUR/USD: 1.1410The dollar remains under heavy pressure and at its lowest levels in almost 6 months against some of its major counterparts after more soft data (PPI) again challenged the theory of improved US economic growth, underlining the view that the Fed may have to delay any hike in interest rates. Today will provide further evidence of where the US economy stands with the release of a variety of figures, including the New York State Empire Mfg Index, US Capacity Utilisation, Industrial Production and the Rts/Michigan Consumer Sentiment Index. There is very little from Europe today, although the BOJ's Kuroda will be speaking in the Asian session.
After reaching a high at 0.8162 yesterday, the weekly Kijun stalled any further progress, and lower iron ore prices have since seen a reverse to current levels.
While the dailies remain positive, the 4 hour charts are rolling over, suggesting that we could have some near term downside momentum that would test the session low of 0.8062, below which would find bids at 0.8030 (6 May high) and then at 0.8015 (23.6% of 0.7532/0.8162) and at 0.8000.
A return to the topside would see sellers at 0.8100 and then at 0.8125. I doubt that we head above here today but further progress would revisit 0.8162 and then the next major resistance at 0.8218 (50% of 0.8910/0.7532). Beyond that, further targets would be at 0.8294 (15 Jan high) and the 100 DMA at 0.8325.
With no news out ahead of the US data it could end up being a largely rangebound session, but with a mild downside bias..
Jim LanglandsFX Charts www.fxchartsdaily.com
