AUD/JPY correction ahead of ADP report

<p>The FX markets played second fiddle to the equity markets as Asian bourses followed the Dow into the red. Early taper concerns from the Federal […]</p>

The FX markets played second fiddle to the equity markets as Asian bourses followed the Dow into the red. Early taper concerns from the Federal Reserve looked to initiate profit taking ahead of Central Bank meetings tomorrow and the US jobs report on Friday.

AUD broke the 0.9050 support level as the Australian Q3 GDP came in below expectations at 0.6% versus the consensus of 0.7% with the Australian treasurer Joe Hockey adding that the budget for 2013-2014 had ‘ deteriorated significantly’ which will mean the Government GDP forecast will not be achieved.

The JPY slide has halted for the moment as $/JPY retreats from 103.50 to 102.20 within 24 hours as the Nikkei mirrors global equities, closing down over 2% with BoJ board member Sato adding that the magnitude of the April 2013 QE launch in Japan would be difficult to replicate.

The data this morning includes service PMI data from the EU & UK with GDP and retail sales also released from the Eurozone as the US session brings us the ADP employment report, US trade balance, new home sales and finally the latest thoughts from the Beige book.



Supports 1.3550-1.3490-1.3425 | Resistance 1.3600-1.3630-1.3685



Supports 102.20-101.75-101.50 | Resistance 103.50-103.80-104.30



Supports 1.6340-1.6250-1.6180  | Resistance 1.6450-1.6500-1.6620

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