AUD/USD: 0.9490EUR/USD: 1.3675The China manufacturing PMI’s came and went without bothering the market too much, ahead of the RBA, who left rates unchanged. The statement reiterated the view that the Aud is too strong, but to little avail as it has since jumped up to a high of 0.9505, taking out the tough 0.9460 barrier in the process, before settling the US session at 0.9495 (76.4% of 0.9757/0.8660).
A sustained break of the Fibo resistance, and then above the session high (0.9505), the path now appears to be opening up towards the 6 November 2013 high at 0.9543. Beyond that, the long term objective from the head/shoulder reversal is now at 0.9660. I notice that the WSJ is today carrying an article suggesting a return to parity. Who knows? But we are heading in the right direction as investors seek yield.
On the downside, 0.9460 will now be strong support ahead of 0.9440, which should also be strong. Back below there would suggest at decline back towards 0.9400 where the rising trend line will act as support.
For the coming session, the Trade balance will be the focus, but a day of consolidation close to current levels, ahead of the ECB/NFP, tomorrow, would not surprise
Economic data highlights will include:
Trade Balance
Jim LanglandsFX Charts www.fxcharts.com.au
