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Friday, August 7th
AUD/USD is moving up despite worse than expected home loans data from Australia. With the current market price of aussie at 0.7374 the pair was supported by the positive RBA statement. Downward revision of the growth forecast in Australia for 2015/16 and lowering the unemployment forecast was taken by the market as a bullish sign. It was also said that decline in AUD is expected once the Fed raises rates. The support is located at 0.7254 and resistance at 0.7407.
EUR/USD inched up to 1.0920 extending gains of the previous session, as U.S. Treasury prices surged ahead of today’s Non-Farm Payrolls data. The single currency was relatively flat against the US dollar during the previous month and has remained below 1.10 for the last eight sessions. The pair is likely to gain support at 1.0808 (lows of July 20) and resistance at 1.1114.
USD/CAD will have a volatile session today with important data coming out from both countries. The loonie is still above the key support level of 1.3063, but the market is waiting to see the current consolidation developing into a trend. The direction of this trend will be determined solely by the fundamental data from both countries, so today’s news might as well serve as a catalyst for more active market situation development. Currently, USD/CAD is at 1.3111.
USD/JPY hit the 124.84 level this morning with subsequent consolidation at 124.73. BoJ Governor reiterated that the last quarter’s weakness is not going to continue and inflation will reach 2% by September 2016. The support and resistance levels to watch are 123.79 and 125.17, respectively.
GBP/USD experienced considerable losses yesterday, but remained in the consolidation corridor formed by 1.5683 and 1.5467 levels. The idea of “Super Thursday”, which is criticized by many for the reason of the likelihood of it becoming the British version of US NFP, was intended to give the market more information on British monetary policy decisions simultaneously. Yesterday, the data showed that raising the interest rates in UK is a long-term goal and BoE is intending to closely watch the inflation pace to make a more fundamental-data-based decision.
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