AUD/USD: 0.7235EUR/USD: 1.1030It has been another choppy ride on Friday, but with risk sentiment generally looking somewhat more positive despite the sharp decline seen in Chinese stocks yesterday (-6.3%). The focus will turn to China again today, not only looking at the stock markets but also for any soundbites coming out of the G20, which is being held in Shanghai. Elsewhere, the economic focus at the end of the week will be on the German CPI and on the provisional Q4 US GDP and Consumption/Figures. Have a good weekend.
AudUsd had a solid session on Thursday and currently sits at close to the day’s highs (0.7242) despite the steep decline in Chinese stocks (-6.3%), but underpinned by demand for AudJpy.
There is little data today, with the China House Price Index being the only announcement that is likely to affect the Aud ahead of the US session, and in Asia it will be one of largely watching the Asian stock markets.
The Aud currently retains a positive bias and the daily charts still look constructive. If so, we could now see a run towards the 23 Feb high at 0.7258, above which could see a move towards 0.7280 and to 0.7300, although this seems unlikely today. If wrong, look for a retest the 31 Dec high at 0.7327 although I am not sure that we get there in the short term.
A break back below 0.7200, buyers will again be seen at 0.7190 (100 HMA), at 0.7165 (200 HMA) and at the 0.7155 session low. Below there, previous lows at 0.7145/35 will again see bids, but below which, look for a run back towards 0.7100, and below that, to the 19 Feb low at 0.7068
Right now, buying dips seems to be the plan, but be wary of another decent selloff in Chinese stocks, which may lead to more widespread risk aversion and a lower Aud.
Economic data highlights will include:
China House Price Index .
Jim LanglandsFX Charts
