Euro in choppy waters as aussie climbs on China growth fears
City Index March 26, 2014 1:14 PM
<p>A choppy day for the euro yesterday after it couldn’t find the direction in which it wanted to go. The currency spent most of yesterday […]</p>
A choppy day for the euro yesterday after it couldn’t find the direction in which it wanted to go. The currency spent most of yesterday being offered and then Draghi spooked the market with comments that the ECB is ready to act. This sent EUR/USD to 1.3750 lows, following comments that there is no deflation risk in the eurozone. This sent EUR/USD back up to where the day started, at around 1.3740, so some big swings on very little new information shows how vulnerable the euro is at the moment.
The Aussie was the best performer overnight, up around 40 points so far, followed by NZD which is up around 30 points. This seems to be due to increasing worries about the slowdown of China growth, with the more likely outcome of more stimulus to be added. The RBA also helped AUD get a bit of an extra edge after upbeat comments about the economy rebalancing and no housing risks, but mainly there was no mention of wanting the AUD lower even though it has helped the economy so far.
US durable goods orders are to be released today and that is expected to come in weaker than before at 0.3%.
Today’s data events come in the form of the IFO survey from Germany, along with UK inflation data as the US session gives us the latest consumer confidence reading.
Supports 1.3800 1.3740 1.3700 | Resistance 1.3835 1.3850 1.3880
Supports 102.00 101.60 101.30 | Resistance 102.45 102.70 103.00
Supports 1.6505 1.6485 1.6440 | Resistance 1.6575 1.6600 1.6550
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