USD trades within tight range as traders await tapering signal from Fed
City Index August 5, 2013 2:48 PM
<p>Non-farm payrolls came in lower than expected on Friday, causing the dollar to remain weak but still over the 100k+ mark and unemployment fell. Bullard […]</p>
Non-farm payrolls came in lower than expected on Friday, causing the dollar to remain weak but still over the 100k+ mark and unemployment fell. Bullard says that the Fed needs more data before tapering questions can be settled, so not much action in the market as we still await a clearer picture from the Fed.
In Asia the open was pretty quiet, with USD still remaining weak as China services to manufacturing suggest the slowdown is stabilising. Australia retail sales were flat for the month, coming in below expectations and adding more pressure on the weakening AUD. The big news in Asia was that China has banned milk powder from New Zealand, causing a selloff in the Kiwi down to monthly lows.
Today’s figures are EU PMI, expected at 49.6 and then UK PMI, expected at 57.4 and EU retail sales, expected at -0.6%. This could give another boost to EUR and GBP, with USD on the back foot until US ISM non-manufacturing PMI is expected better than last month at 53.2. Maybe we’ll see another tight range today in the world of FX. Watch out for the RBA rate decision overnight, where a rate cut could be expected.
Supports 1.3200-1.3165-1.3100 | Resistance 1.3300-1.3345-1.3415
Supports 97.90-97.50 97.15 | Resistance 99.15-99.50-100.00
Supports 1.5250-1.5210-1.5195 | Resistance 1.5320-1.5365-1.5430
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