AUD/USD: 0.9355EUR/USD: 1.3795The dollar was under pressure on all fronts today ahead of the FOMC minutes, due later in the NY session. Cable, Aud and the Yen all had a strong run higher. The Euro, Chf and Kiwi also performed well and the DXY looks once more to have failed on the topside. Today, apart from the FOMC Minutes, markets will focus on secondary EU/US data, while in Asia we get the WBC Consumer Confidence and Home Loans data.
The Aud has continued to run higher, despite the Yen strength, reaching a peak of 0.9365 as the US$ was generally soft, while emerging market currencies retained their bid tone.
Momentum for the Aud still points higher, although ahead of tomorrow’s Jobs data the pace may slow down somewhat. We do get the WBC Consumer Confidence and Home Loan data later today though, and a positive reading there would underpin the Aud and potentially push it on to 0.9400.
Before then though, having taken out the resistance at 0.9340, the next level to watch will be 0.9387 (38.2% of 1.0582/0.8660). Beyond 0.9400, there is not a lot ahead of 0.9450 (weekly cloud base) and 0.9494 (76.4% of 0.9757/0.8660). Looking for a run towards the SHS target at 0.9580 remains the strategy.
On the downside, 0.9340 will now provide support ahead of 0.9310. Under 0.9300 will find buyers at 0.9280 (23.6% of 0.9005/0.9365). I don’t think we are heading back down here yet, but if wrong further bids would be seen at around 0.9265 100/200 HMA’s.
Look once more to buy dips towards 0.9300 for an eventual break of 0.9400 and a run to the weekly cloud base at 0.9450.
Economic data highlights will include:
WBC Consumer Confidence, Australian Home Loans, Investment Lending
Jim LanglandsFX Charts www.fxcharts.com.au
