Weaker Asian markets give the US Dollar a slight bid in quiet markets
City Index March 6, 2012 1:00 PM
<p>EUR/USD Range: 1.3187-1.3226 Support: 1.3160 Resistance: 1.3250 The Euro continues to trade within a relatively tight range as the markets await the Greek Private Sector […]</p>
The Euro continues to trade within a relatively tight range as the markets await the Greek Private Sector Involvement deal/outcome and the US payroll data at the end of the week. The market seems reluctant to take fresh positions ahead of the events at the end of the week with today’s data highlight being the release of the Euro-zone Q4 GDP data at 10am. Technically support is seen is at yesterdays low at 1.3160 with resistance seen at 1.3250 although traders are noting that position stops are located at either side of these levels.
Range: 1.5849 – 1.5884
The pound held up reasonably well yesterday following a weaker than expected services PMI number. With lack of data today ahead of the MPC meeting on Thursday traders expect the technical picture and range trading to likely dominate the pair with support seen towards yesterdays lows at 1.5790 and resistance at the 200 day moving average at 1.5890, whilst market offers are being noted at 1.5930.
The AUD was the biggest loser in Asia overnight on concerns of falling Chinese growth and an RBA statement that left the door firmly open for further rate cuts. The RBA left rates on hold as expected at 4.25%, whilst repeating its message from February that ‘should demand conditions weaken materially, the inflation outlook would provide scope for easier monetary policy’. The RBA statement wasn’t really new news but the market continues to show bearish signs towards the lifestyle currency after weaker Chinese growth data although the broader range of 1.06-1.08 still remains intact.