The greenback weakened somewhat in the last session and is nearing the bottom of its cycle. Bonds ticked up a couple of points (rates falling) and commodities had a great run. With the jump in Chinese data yesterday, copper had a positive 3% day, the market became buoyant with the positive sentiment on the global market. That is something I have been advocating for some time now. This sentiment should carry into the weekend, with a quiet news day after the Chinese CPI number.
DATA HIGHLIGHTS AHEAD (times are in AEST) – 1130am RBA monetary policy statement. 1130am Chinese CPI. 1030pm Canadian Unemployment.
AUDUSD – Came up to tag the fib and resistance level of 9138. With China data and RBA out today it could get tricky but sentiment is currently to the upside. Resistance: 9138/9300/9390 Support: 9000/8845/8807/8672
EURUSD – Tagged 1.34 (seems last night was a game of tag the horizontal level and move away) the upper side of this range. Will be interesting to see where to next, back to 1.30 or push up to 1.38. Resistance: 13400/13700/14260 Support: 13206/13163/13040
GBPUSD – The US$ continues to influence proceedings as the cable put on another 80 pips towards the upper side of the range. Resistance: 15550/15608/15755 Support: 15200/15080/15000/14800
NZDUSD – More tagging (this is getting worse than a teenager on facebook during a party) by the kiwi touching 8050 and reversing. Resistance: 8050/8100/8161 Support: 7860/7710/7630
USDCAD – Just spoke a little too soon. The Loonie got some buying interest on the back of the commodity run last night. An overextended run but a LHLL and chopping across the 50ema. Now I am out I will stay out. Resistance: 10525/10597/10677 Support: 10225/10100/10000
USDJPY – A LHLL but not much of a bar really, the BOJ had no change yesterday and the market feels a little flat in the ¥ Resistance: 9765/9980/101.20 Support: 9580/9497/9393
GOLD – Benefited from the commodity run too, but still prefer to be short. Resistance: 1,354/1,425/1,489/ Support: 1,266/1,226/1,160
David Long / Proprietary Trading Manager