AUD crumbles ahead of confidence data
City Index July 30, 2013 2:14 PM
<p>AUD has taken centre stage in the FX space overnight, falling 135 points during the Asian session. The move lower started following the release of […]</p>
AUD has taken centre stage in the FX space overnight, falling 135 points during the Asian session. The move lower started following the release of building approvals data that showed a decline of 6.9% versus an expected rise of 2% -dragging the year on year number down 13% against the consensus forecast of flat.
RBA governor Glenn Stevens then made a speech that now has the futures market pricing in an 89% chance of a 25 basis point cut from the Australian central bank next week. Mr Stevens said the recent fall in AUD makes sense from a macroeconomic prospective and that he would not be surprised if it fell further over time whilst also suggesting that Q2 inflation data gives room for lower interest rates.
USD/JPY held the technical support at 97.50 suggested in yesterday’s report and with the Nikkei rallying, we have seen USD/JPY reclaim the 98.00 handle as data from Japan overnight saw the unemployment rate drop from 4.1% to 3.9%, with industrial disappointment coming in at -3.3% for June following a rise of 1.9% in May.
Today’s data is all about confidence sentiment surveys from Europe at 10am and the US at 3pm.
Supports 1.3245-1.3220-1.3160 | Resistance 1.3300-1.3340-1.3380
Supports 97.85-97.50-96.90 | Resistance 98.50-98.80-99.15
Supports 1.5320-1.5275-1.5210 | Resistance 1.5350-1.5390-1.5415
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