RBA minutes spark AUD short covering

<p>AUD is trading just shy of the 0.9200 level as European traders arrive at their desks this morning following Friday’s move below 0.9000. The catalyst […]</p>

AUD is trading just shy of the 0.9200 level as European traders arrive at their desks this morning following Friday’s move below 0.9000. The catalyst for the short covering came from the RBA minutes which revealed that although the Australian Central Bank continues to look for further AUD, weakness they are currently not concerned with the inflation outlook. The ACB has noted that it was possible the exchange rate would depreciate further over time as the terms of trade and mining investment declined, which would help to foster a rebalancing of growth in the economy. The Australian CPI data released on 24th July will now be a major focus for the FX market.

It was a relatively subdued session for the other currency pairs as the FX market awaits the major highlight this week – Fed Chairman Ben Bernanke’s semi annual testimony before the House and the Senate on Wednesday.

Today we do have data highlights from the UK, EU and US, with CPI data released from both the UK and US. We get the final HICP and trade balance data from Europe along with the German ZEW economic sentiment index and industrial production data from across the pond this afternoon.

 


EUR/USD

Supports 1.2990-1.2840-1.2750 | Resistance 1.3120-1.3210-1.3300


USD/JPY

Supports 99.30-98.80-97.50 | Resistance 100.60-101.30-102.80


GBP/USD

Supports 1.4970-1.4920-1.4855  | Resistance 1.5150-1.45200-1.5285

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