AUD/USD: 0.9695EUR/USD: 1.2850 The Aud continues to suffer heavily and has been pretty much under pressure throughout the session. A technical break of resistance in Eur/Aud did not help it, and this put the pressure on the downside in Europe in Aud/Usd towards 0.9760, which only accelerated in the US session following Bernanke's testimony, falling to a spike low of 0.9661, from where it is struggling to regain 0.9700.
The sellers at 0.9825/40 had earlier capped the Aud, as they have over the last couple of days, and it is now some way off, and looks unlikely to be seen in the short term at least, with secondary data unlikely to push it too much higher today.
The immediate resistance is at 0.9710 - last week's low - and then at 0.9760 and 0.9800 and 0.9840. Anything towards 0.9750 now looks like a good opportunity to sell into.
On the downside, 0.9660 should be strong, but a drop below there would suggest a run to 0.9580 (June 2012 low).
Keep a close eye on the crosses. Aud/Jpy is back under 100.00 and will have the carry trade players a bit nervous. On top of this, both Eur/Aud and, to a lesser degree, Gbp/Aud, look as though they have legs for a run to the topside and this could keep the Aud under pressure in the foreseeable future.
Economic data highlights will include:
Draghi Speech, EU Markit PMI Data, EU Consumer Confidence, Fed's Bullard Speech, US Jobless Claims, New Home Sales/House Price Index, US Markit Mfg PMI,
Aud Consumer Inflation Expectation, HSBC China Flash Mfg PMI
