AUD/USD: 0.9425EUR/USD: 1.3550It has been a volatile session on all fronts with good moves in currencies, commodities equities and bonds. In particular, Cable has jumped late in the US session on some hawkish BOE comments, while the Yen, Aud and Kiwi have all moved to higher ground. Oil was a big winner on the back of the Middle East tension, as were Gold/Silver, while Equities are lower, partly due to soft US data. Today’s focus will be on the BOJ and the China Retail Sales/Industrial Production. Later sees the German CPI and then the US PPI, Rts/Michigan Consumer Sentiment Index. Have a good w/e.
The Aud continues to head higher, partly in unison with the Kiwi, which has seen good buying interest following yesterdays RBNZ rate hike, and partly assisted by ongoing sales in EurAud, which hit a new trend low of 1.4358 today.
The AudUsd, after reaching 0.9438, is looking good for a run at the 10 April high at 0.9460, above which would suggest an attempt on 0.9500 (0.9495: 76.4% of 0.9757/0.8660). Above here there would be little to stop the Aud heading towards the 6 June high at 0.9543 and the long term objective off the long term head/shoulder reversal is at around 0.9630, although there is plenty of work to be done ahead of that.
The downside will now find buyers at 0.9400 and again at 0.8380, which if seen would be quite strong support, but a break of which would head back to 0.9365 and possibly to 0.9350.
Today’s focus will be on the BoJ and on China's May IP/Retail Sales data, and should that be supportive we can probably expect a run towards 0.9460. Overall I still prefer to play it from the long side by buying dips and would use 0.9400/0.9460 as a guide.
Economic data highlights will include:
China Industrial Production, Retail Sales, Urban Investment
Jim LanglandsFX Charts www.fxcharts.com.au
