Choppy trading was the main market feature on Wednesday with markets nervous ahead of Thursday’s ECB decision with dollar buying on dips. The Australian dollar spiked higher following a stronger than expected GDP release at 1.1%, but AUD/USD hit tough resistance on approach to the 0.9300 level and reversed lower with markets also taking a less positive tone towards the GDP details. Read the rest of this entry »
Forex Day Trading Blog
The dollar held firm during the past 24 hours and found support at key technical levels without being able to break any major resistance.
Australian data did not have a major impact overnight Tuesday with a slight miss on retail sales. There was no surprise from the Reserve Bank with interest rates left on hold at 2.50% following the latest meeting. There were no fresh warnings over potential intervention and AUD/USD initially extended gains to the 0.9285 area before meeting resistance. Read the rest of this entry »
The dollar strengthened in Europe on Monday before being shackled by a disappointing US manufacturing reading ahead of key risk events this week. Overnight, there was a stronger than expected reading for the latest Chinese manufacturing PMI release and risk appetite held firm in Asia with Nikkei gains of 2% helping to push USD/JPY to a test of resistance above 102.00. Read the rest of this entry »
Markets were unable to break significant resistance levels on Friday, although positioning considerations did trigger significant volatility in choppy conditions.
There was a sharp increase in the Japanese core national inflation rate to 3.2% for April from 1.3% as the sales-tax increase took effect which maintained expectations that the Bank of Japan would be more cautious over further quantitative easing. This provided some yen support, offset by a weaker than expected industrial production release. USD/JPY was unable to break above 101.80 and edged back to the 101.50 area as yield support remained weaker. Read the rest of this entry »
The dollar was unable to make further headway on Thursday as consolidation dominated. The latest Japanese retail sales data was weaker than expected with a 4.4% annual decline as the sales tax increase took effect. The latest capital-account data registered a slowing of outflows from Japan which will also tend to curb potential short-term yen selling pressure. The dollar was unable to gain any fresh support given yield considerations, trapped below 102.0 resistance, and USD/JPY dipped to lows below 101.50 early in Europe. EUR/JPY approached the 138.00 support area with GBP/JPY testing important support around 170.00. Read the rest of this entry »