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Tuesday, August 11th
The Australian dollar fell sharply after publication of downbeat NAB Business confidence survey. The aussie lost 0.63% declining to 0.7317. Technically, AUD/USD has dropped away from the previous resistance levels it was heading to, so the new resistance levels to watch are located in between 0.7418 and 0.7437. The support is likely to be found at 0.7311.
NZD/USD is down today after electronic card retail sales data coming out with lower than expected reading missing the expectations by 0.1%. On Friday, the New Zealand dollar was challenging the 0.6637 level, but has failed to withstand the rising demand for the greenback as Fed officials continued to reiterate on the rate hike with solid employment data of last week. The current NZD/USD quote is 0.6545 with mostly bearish expectations. The key support level is 0.6487 (lows of August 5) and resistance is at 0.6632.
EUR/USD surged yesterday breaking through the 1.10 level as new indicators of Greek bailout could be achieved before the end of the month. A spokesperson from European Commission commented that Greece could receive up to 86 billion euros in critical aid after a weekend of productive talks in Athens. Nevertheless, the single currency declined this morning back below 1.10 currently trading at 1.0970 against the US dollar. German WPI came out in red colour and the market is watching the German ZEW Economic Sentiment due later in the day.
GBP/USD was broadly up yesterday, reaching the 1.56 level after suffering considerable losses last week. The cable was supported by the “less hawkish than expected” comments from Fed, which did suggest the rate hikes are close, but no indications it could possibly happen in September. The strong support level remains at 1.5487, while resistance can be found at 1.5676.
The US dollar index, which measures the greenback’s strength against basket of major currencies, slipped 0.01% overnight to the reading of 97.22. The demand for the dollar is now rising again pushing the index higher to 97.51 (+0.28%).
Ahead in the day, the investors are viewing Canadian Housing starts, Euro zone ZEW Economic Sentiment and US Non-Farm Productivity.
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