AUD/USD: 0.7200EUR/USD: 1.1210 The US$ has again been under heavy pressure on Thursday and comes ahead of Friday’s US Jobs figures. Although much of the focus will be on the US data, before then Australia has the Retail Sales and RBA Monetary Policy Statement to provide direction for the Aud. Look out for Chinese stock markets, which could be volatile as traders square up ahead of next week's Chinese Lunar New Year holiday. It is going to be another wild ride so be nimble. Have a good weekend.
AUDUSD has had another strong session against the US$ by climbing to 0.7242 before reversing slightly to finish the day at close to 0.7200 on the back of the minor selloff in US stocks and the weaker oil price, where we are likely to sit while waiting for the local December Retail Sales figures (exp +0.5% mm) and the RBA Monetary Policy Statement to provide the next direction. Keep an eye on Chinese stocks today, which could be volatile as traders square up positions ahead of next week's Chinese Lunar New Year holiday.
The near term charts still look remain positive but are somewhat overbought and maybe on the cusp of turning a bit lower. On the other side of the coin, the dailies are beginning to look rather more positive, so a choppy session looks to be in store while waiting for the US jobs data, but buying dips remains the cautious outlook.
The initial support levels are likely to be seen at 0.7180 and 07160 (both minor) and then at 0.7145 (23.6% of 0.6826/0.0.7242 & 55/100 DMAs) which should be more substantial. Below this would head towards the 100 HMA at 0.7100, the 200 HMA at 0.7065 and minor rising trend support at 0.7035.
On the topside resistance will be seen at the session high and then again at 0.7265 (minor), a break of which would possibly see it back at 0.7300 and the 31 Dec high at 0.7327.
Economic data highlights will include:
Retail Sales, RBA Monetary Policy Statement.
Jim LanglandsFX Charts
