AUD/USD: 0.7150EUR/USD: 1.1100FX markets have been choppy but relatively steady, with the US$ trading mixed against its major counterparts, while US stocks have finished flat. The main interest has been in Gold, which had a solid session, rising by $37 from the day’s lows when traders reacted to the relatively dovish minutes from the January FOMC meeting. These provided some indication that the Fed may need to delay the pace of any rate hike through the remainder of 2016. Today’s event risk will come via a speech by Fed’s Mester and the US Jan CPI. Before then, there is very little data due in Asia, while from Europe, the German PPI and the UK Retail Sales will be the focus.
AUDUSD was contained within the 0.7132/82 range though Thursday, that had traded in its entirety immediately following the release of yesterdays jobs data.
The 1 and 4 hour indicators are rather flat so a similar session looks likely today, although note that Gold had a strong rally and may underpin the currency. There is no economic data today to directly affect the Aud and any moves are likely to be driven from offshore flows.
Resistance will arrive at 0.7180, above which could then see a run back to 0.7200. Above here would allow a move towards 0.7218 (minor) 0.7241 (4 Feb high), and then towards 0.7280 and 0.7300.
On the downside, buyers will be seen at the 0.7130 lows, ahead of a possible return to 0.7100. This seems unlikely, but below 0.7100 would then allow a return to the previous session low at 0.7083, and below there, towards support at 0.7060/65 (minor). Below this would head towards 0.7040 and 0.7000, ahead of the Thursday low at 0.6983 and the Wednesday low at 0.6972.
Jim LanglandsFX Charts
