All eyes will be on the release of the Fed’s Beige Book in the US today, which is expected to throw light on the economic situation in the US

<p>AUD/USD Range: 1.0940 – 1.1063 Support: 1.0950 Resistance: 1.1075 The AUD took centre stage in the Asia session today, with the Australian Q2 CPI printing […]</p>

AUDUSD
AUD/USD
Range: 1.0940 – 1.1063
Support: 1.0950
Resistance: 1.1075
The AUD took centre stage in the Asia session today, with the Australian Q2 CPI printing a higher than consensus figure of 0.9% from an expected 0.7%. The AUD rallied 100 points, breaking above 1.1000 to print a high of 1.1063. Rate cut expectations have now been scaled back somewhat but hikes are definitely not priced in as yet as the market awaits the RBA’s statement which is now expected to be slightly more hawkish than previously thought as the market looks for the RBA to upgrade its inflation forecast in August.
EURUSD
EUR/USD
Range: 1.4480 – 1.4537
Support: 1.4420
Resistance: 1.4550
With a weaker dollar across the board overnight, the euro pushed above the 1.4500 level. From here on the market seems to be taking a breather as we look for confirmation that we are breaking out of the 1.4000-1.4500 range as the US debt ceiling debate continues to keep the dollar offered. The gridlock continued last night with very little progress made towards a deal. House speaker Boehner’s plan suffered a blow after the CBO said that it would only achieve $851 billion in deficit savings over the next 10 years from the $1.2 trillion previously called by Republicans. This highlighted the growing scepticism that the cuts proposed are inadequate and reduced the prospect of a viable alternative being successfully proposed.
GBPUSD
GBP/USD
Range: 1.6407 – 1.6437
Support: 1.6340
Resistance 1.6500

 

Sterling trades higher again in Asia, with general dollar weakness after yesterday’s stronger GDP reading for Q2 caught the market short. Most had been predicting a weaker-than-consensus reading. The ONS then stated that due to seasonal factors (the royal wedding), the GDP number could have been 0.5% higher, taking the reading to 0.7%. With lack of data and continued debt deadlock in the US, the market may continue to drive the GBP in the near term.

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