AUD/USD: 0.7230EUR/USD: 1.1030Cable was the centre of attraction today, having its largest one day fall in 6 years, and in doing so it headed to a 7 year low, before a partial bounce at the end of the session. Elsewhere it has been a good day for the dollar, with the Euro under pressure after the release of the generally weak PMIs, and also for the commodity bloc currencies which are enjoying the positive start to the week seen in the stock and commodity markets. Today will look to the German GDP and IFO for inspiration and then later, from the US, we get the Existing Home Sales, Case Schiller House Price Index and the Consumer Confidence figures.
A strong run higher in both stock and commodity markets has helped AudUsd to climb higher on Monday, with the improved risk sentiment propelling it from a low of 0.7135 up to a high of 0.7246 pretty much where it closed.
There is no major economic release to speak of today, so it will again be the flows in risk sentiment, with the gyrations of the stock and commodity markets that decide the direction of the Aud, but for the time being things generally look relatively positive and therefore, trading from the long side appears to be the plan for the next 24 hours.
After trading up to 0.7246, the Aud has now taken out the 4 Feb high of 0.7240, but closed just below it at 0.7230. If 0.7250 is successfully taken out, look for a run towards 0.7280 and to 0.7300. Beyond there would look to retest the 31 Dec high at 0.7327 although I am not sure that we get there in the short term.
On the downside, support will be seen at 0.7200 and at 0.7185 (both minor) ahead of 0.7150 and the 0.7135 session low, although this looks rather unlikely to be seen again today..
Jim LanglandsFX Charts
