AUD the highlight with Japan on Holiday
City Index March 20, 2012 12:00 PM
<p>EUR/USD Range: 1.3220-1.3244 Support: 1.3100 Resistance: 1.3300 Another subdued Asian session as range markets prevail with Tokyo on holiday celebrating Equinox day. The euro traded […]</p>
Another subdued Asian session as range markets prevail with Tokyo on holiday celebrating Equinox day. The euro traded with a very slightly weaker tone with Asian equity markets dampening risk sentiment after the Chinese government announced higher fuel prices. Today the market will keep a keen eye on Spanish, Greek and EFSF auctions before the release of the US housing starts this afternoon which are expected to show a reading of 695k.
Range: 1.5835 – 1.5896
UK CPI data is released at 9.30 AM GMT this morning with the market expecting to see a continued moderation in price pressures with the inflation headline number expected to fall from 3.6% to 3.3%. Cable closed above its 200-day moving average at 1.5860 on Monday which sends another technical bullish signal as the bulls continue to signal a move to test the 2012 highs of 1.5993.
The AUD was the highlight currency overnight with the lifestyle firstly coming under pressure following the RBA minutes which sighted there was ample scope to cut rates if needed as long as inflation was contained. The AUD was then dealt a further blow from Australian mining giant BHP Billiton that warned that Chinese demand growth was likely to fall adding to concern to the Australian mining boom after the mining tax was passed in Canberra on Monday.