By: Alex Brandt
Highlights:
Highlights:
AUD/USD - RBA raises rate to 4%
USD/JPY - Unemployment rate falls to 4.9%
GBP/USD - Failed to break above 1.50
EUR/USD - Testing 1.35 again
Eurozone Economic Data for Today:
09:30 GMT: UK construction PMI for February expected 48.9 from previous 48.6
10:00 GMT: Italian CPI for February (prov) expected +0.2% m/m, +1.3% y/y EU harmonized +0.2% m/m, +1.3% y/y
10:00 GMT: Euro zone CPI for February expected +0.9% y/y
10:00 Euro zone PPI for January expected +0.6% m/m, -1.1% y/y
After seeing the pound collapse yesterday, traders can be a bit more optimistic today with the RBA raising rates to 4% and releasing a statement that has a optimistic outlook on the global recovery.
The initial reaction of AUD/USD spiked to .9030 then dropping down to .8960 as long positions booked profits. The AUD/USD remains at a turning point; a break below .8935 could see a clean-out of weak long positions whereas a break above .9070 would trigger heavy short stops and could propel the pair to .9300. Cable opened the session just below 1.5000, after rallying 200 pips off its NY low at 1.4780. It has gradually drifted lower during the session despite no new GBP related developments.
Some analyst think that GBP/USD will be around 1.4000 by their election day, fears of a hung parliament have helped push the pair lower. EUR/USD has slipped a little further, presently down at 1.3517. Talk of buy orders at 1.3500/10, small stops just below. Can expect larger buy orders to be lined up down in 1.3450/70. EUR/USD seems to be taking its lead from cable which is getting hit early.
Central Banks also have shown interest buying EUR/USD around 1.3450 and selling at 1.36ish over the past week, effectively keeping the pair range bound. A break below 1.34 would open the door to 1.32. USD/JPY failed to react on the news that unemployement dropped more then expected to 4.9%, a indication that the Japanese are finally starting to recover. Heavy orders either side of the market at 88.50/89.50 are likely to ensure range trading for a few sessions to come.
The initial reaction of AUD/USD spiked to .9030 then dropping down to .8960 as long positions booked profits. The AUD/USD remains at a turning point; a break below .8935 could see a clean-out of weak long positions whereas a break above .9070 would trigger heavy short stops and could propel the pair to .9300. Cable opened the session just below 1.5000, after rallying 200 pips off its NY low at 1.4780. It has gradually drifted lower during the session despite no new GBP related developments.
Some analyst think that GBP/USD will be around 1.4000 by their election day, fears of a hung parliament have helped push the pair lower. EUR/USD has slipped a little further, presently down at 1.3517. Talk of buy orders at 1.3500/10, small stops just below. Can expect larger buy orders to be lined up down in 1.3450/70. EUR/USD seems to be taking its lead from cable which is getting hit early.
Central Banks also have shown interest buying EUR/USD around 1.3450 and selling at 1.36ish over the past week, effectively keeping the pair range bound. A break below 1.34 would open the door to 1.32. USD/JPY failed to react on the news that unemployement dropped more then expected to 4.9%, a indication that the Japanese are finally starting to recover. Heavy orders either side of the market at 88.50/89.50 are likely to ensure range trading for a few sessions to come.