The
Aussie dipped further against the
greenback as the RBA governor Glenn Stevens stated that its expects the currency more likely to fail than rise as the costs and productivity in the economy as well as the terms of trade do not support current level. The
AUDUSD sank to support at 0.9502 in today’s trading, although sell off was triggered yesterday by stronger than projected US Industrial output that lifted
US dollar value. The currency pair remains in downside bias with recent events still weighing on its trading, we would expect it to reach support at 0.9462.
AUDUSD
In Japan, the
NIKKEI 225 lost by 0.49% supporting the
Japanese Yen and thus the
USDJPY was under selling pressure sliding to support at 97.45. Moreover, the Japanese Unemployment rate was in line with projections at 4.0%, while Retail Sales jumped by 3.1% beating estimates at 1.9%. The currency pair could easily lost further ground with recent trend being negative and head towards 97.17, followed immediately by 3-week low at 96.93.
USDJPY
Additionally, what we observe here is that the
AUDJPY could be a nice opportunity to take a short position since both the
USDJPY and the
AUDUSD are down trending. The cross currency pair has breached previous support at 93.01 confirming downtrend and is currently at 92.65 also in downside bias, next support is seen at 92.39.
Elsewhere, investors remain alerted as Fed meeting looms with the
EURUSD still in sideways trading between 1.3830/1.3770. The
GBPUSD dipped from 1.6124 to 1.6064 driven by CBI report showing that 42% of retailers said that sales were up and 39% said that was down, giving a rounded figure of 2% down from estimates at 31%.
Looking ahead in today’s calendar we anticipate US Retail Sales and PPI data as well as US Case Schiller House Price Index, closing with Consumer Confidence data. Lastly concerning equities trading the BP, Goodyear Tire, NOKIA, Occidental, Pfizer and Western Union will release earnings data during and after US session.
