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Thursday, August 27th
USD/JPY is up today after yesterday’s release of US news supported the greenback. Crude Oil Inventories figures came out in green colour shortly after publication of Core Durable Goods numbers, which were higher than expected at 0.6% versus 0.4% expected. Bank of Japan governor said that Japan will contribute to raising the growth potential of the economy through QE. The yen reacted immediately with the price rallying to 120.360, subsequently consolidating at 120.180. The support and resistance levels are located at 119.18 and 121.36, respectively.
NZD/USD continues tracking the Shanghai Composite with a clear correlation between shares opening higher and NZD edging up earlier this morning. The pair reached 0.6471 level before consolidating at 0.6446. The pair was also supported by a brief contraction of the US dollar index, which was down 0.10% at 95.21.
AUD/USD re-approaches its six year lows after Australian data showed Building Capital Expenditures were down more than expected while Private New Capital Expenditures also came out in red colour. Ahead in the day, the pair will follow the moves of the greenback, as Pending Home Sales data is published one and half hours after the US GDP reading. Expectations are mostly bearish.
EUR/USD is down to 1.1325 level (more than -1%) after a senior ECB policymaker warned that the risks to its short-term inflation target increased and hinted at fresh easing to combat deflation. It was said that lower commodity prices and signs of economic weakness mean there is an increased risk of euro zone missing its inflation targets. EUR/USD will find support at 1.1112 and resistance at 1.1467.
GBP/USD suffered considerable losses on Wednesday falling to 1.5453 amid stronger dollar. Today, data showed that Nationwide HPI (MoM) was slightly lower than expected at 0.3% and YoY numbers were actually higher than predicted, beating expectations by 0.1%. The Support and resistance levels are located at 1.5321 and 1.5631, respectively.
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