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Tuesday, February 7th
The AUD/USD loses its positions, gained on the back of RBA’s decision. Today, as it was expected, the RBA left its interest rate unchanged, while providing the market with neutral stance on the interest rates outlook. However, RBA members sounded more optimistic, stressing that Australian economy prospects remain positive in wake of improvements in the global economy. On the other hand, the pair lost its upside momentum and has reversed all its earlier gained positions, as returning demand for the US currency combined with sharp increase in Chinese iron-ore stockpiles are negatively influencing the pair. Looking ahead, traders will continue digesting recent events, while JOLTs Job Openings report will bring fresh directional impetus to the pair.
The EUR/USD pair today is losing points, slipping below the level of 1.07. Seems that US bulls have regained control over the pair, forcing it to retreat to its weekly low posted 1.0661, as increasing interest around the US currency is gathering pace. Moreover, significantly weaker German report of Industrial Production, seen in early Europe, is also weighing the pair this Tuesday. Next on tap remain JOLTs Job Openings that are scheduled on NA trading session, but until than the pair will continue tracing US dollar’s price moving actions to determine its further direction.
The Kiwi trims part of its strong gains vs. the greenback, led by positive data from the NZ economy. This morning the RBNZ provided the market with better prospects of further inflation, forcing the pair to refresh its multi-month highs at 0.7375 level and reducing chances of further monetary policy easing by RBNZ. However, better tone around the US currency caused the pair to lose most part of its gains. Today traders will focus on JOLTs Job Openings report, scheduled on NA session, while tomorrow the RBNZ will announce its interest rate decision, which will be closely watched by investors for any impact on the pair.
Today the USD/CAD follows global market sentiments and has refreshed its two-week tops at 1.3174 spot, that is nearly a cent higher today’s lows. Currently the pair is trading within striking distance of its highs, as strong demand for the US currency is significantly supporting the pair. Moreover, recent weakness around oil prices is additionally adding extra legs to the pair. Today traders will await for fundamentals from both neighbor economies, scheduled on NA session, that will be able to bring fresh impetus on the pair.
The main events of the day:
US JOLTs Job Openings – 17.00 (GMT +2)
Canadian Ivey PMI – 17.00 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0664 R. 1.0830
USDJPY S. 110.88 R. 113.20
GBPUSD S. 1.2393 R. 1.2535
USDCHF S. 0.9866 R. 0.9982
AUDUSD S. 0.7604 R. 0.7710
NZDUSD S. 0.7268 R. 0.7354
USDCAD S. 1.2947 R. 1.3205
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