RBA wait for inflation data with highlights today being European auctions and UK inflation

<p>EUR/USD Range: 1.3090-1.3140 Support: 1.2980 Resistance: 1.3205 Market positioning dominates this pair with a move below 1.3000 yesterday followed with a short squeeze that saw […]</p>

EUR/USD
Range: 1.3090-1.3140
Support: 1.2980
Resistance: 1.3205

Market positioning dominates this pair with a move below 1.3000 yesterday followed with a short squeeze that saw a short market scramble to cover their risk back above 1.3100. This morning’s data release from Europe consists of HICP and the German ZEW index with the market looking for a slightly weaker reading. The market will no doubt react to the results this morning from the Greek, Spanish and EFSF auctions. Stops dominate this market with such orders noted below 1.2995 and above 1.3205.

GBP/USD
Range: 1.5865 – 1.5906
Support: 1.5800
Resistance: 1.6000

The queens currency still seems to be dominated by cross markets with EUR/USD trading in broader ranges with cable still seemingly in a 1.5800-1.6000 range. This morning we get the latest reading on inflation from the UK with the market looking for a slightly stronger reading of 3.5%.
AUD/USD
Range: 1.0305-1.0365
Support: 1.0290
Resistance: 1.0400

The lifestyle currency traded with a softer tone overnight after the RBA hinted that a rate cut or cuts were imminent although they are awaiting the release of the inflation report on April the 24th for confirmation that inflation risks have diminished. The market has been pricing in 25bpts cut in both May and June taking the cash rate to an accommodative 3.75%.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.