Fisher buoys the dollar down under

<p>With the Japanese markets closed for a public holiday, market conditions lacked liquidity in the Asian session. This has resulted in a stop loss run […]</p>

With the Japanese markets closed for a public holiday, market conditions lacked liquidity in the Asian session. This has resulted in a stop loss run taking the euro briefly below 1.3450 following hawkish comments from the Fed’s Fisher who was speaking in Sydney. He hinted that the US should end its record stimulus as soon as it can, adding that “at the earliest possible moment we need to focus on transitioning back to having an interest-rate driven monetary policy”.

The dip was short lived, however, as we bounced back to 1.3500 and opening levels as Fisher did acknowledge that he envisaged rates to stay low for an extended period until the US encounter a sustained acceleration in the economy.

In other news, retail sales data in Australia rose above the consensus forecast 0.3% to 0.8%, which has now left investors questioning what tools the RBA have left to counter the currency strength they have been so vocal about of late.

This week’s releases will no doubt bring fireworks (no pun intended) with the release of the US jobs report on Friday as we await comments and possible action from the ECB meeting on Thursday in reaction to continuing benign inflation concerns.

Today’s data brings us manufacturing PMI data from Europe, construction PMI data from the UK and factory orders from the US.

 


EUR/USD

Supports 1.3450-1.3420-1.3380 | Resistance 1.3520-1.3555-1.3580

 


USD/JPY

Supports 98.50-98.10-97.80  | Resistance 98.85-99.20-99.80

 


GBP/USD

Supports 1.5915-1.5890-1.5850  | Resistance 1.5985-1.6000-1.6040

 

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