AUD/USD: 0.7300EUR/USD: 1.0615It has been a volatile session today, with a bit of action for everyone. The US$ has ended up mixed, after comments from Janet Yellen sent the Euro and Cable to new multi month lows. Gold traded to a 6 year low, Oil headed back under $40pb as stories emerged that OPEC are going to resist production cuts at tomorrow’s meeting, and the US equity indices posted a bearish outside day, suggesting further losses ahead. All that action came ahead of the ECB meeting and Janet Yellen’s testimony to Congress, both due during the Thursday session, so we should expect it to be very busy again today. The global Services PMIs will also be released, but are likely to get rather lost in all the noise surrounding the ECB/Yellen.
The firmer GDP figure was mostly priced in by the time it was released yesterday and the Aud peaked at 0.7342 ahead of some choppy trade and is currently a bit lower on the back of the generally stronger US$, currently at 0.7305.
There is a bit of secondary data today, including the domestic Trade Balance, New Home sales and both the domestic and Caixin China Services PMIs, although I would expect that the Aud will hang close to 0.7300 until the major risk events, later in the day, from the ECB and Janet Yellen.
Technically there is not too much change today.
To the topside, beyond the session high, which looks a little unlikely, would open the way towards 0.7363 (15 Oct high) and then on to 0.7382 (12 Oct high & 38.2% of 0.8162/0.6900). Beyond there would put pressure on 0.7400 and possibly on 0.7438 (11 Aug high) and the 200 DMA at 0.7455.
The initial support will arrive at the session low at the session low at 0.7292 and then at 0.7282 (25 Nov high). Below this would then allow a revisit of 0.7256 (23.6% of 0.7015/0.7332), 0.7220 (200 HMA) and 0.7210 (38.2%).
Expect a choppy session, possibly with a mild downside bias.
Economic data highlights will include:
Trade Balance, AIG Services PMI, New Home Sales, Caixin China Services PMI.
Jim LanglandsFX Charts
