Forex: AUD/JPY capped below weekly opening price 96.35

AUD/JPY is currently at 96.20, off fresh session highs at 96.37, printed on Aussie strength following RBA gov Stevens comments to parliament, showing a not very dovish stance. As FXWW founder Sean Lee puts it: “It looks like the short-term market was quite short of this pair, which does surprise me somewhat, and we are seeing some quite heavy end-of-week short covering,” the analyst noted.

The cross bounces from yesterday's fresh Feb lows at 95.05, previous January highs, as Aussie and commodities were sold off Wednesday following FOMC minutes. Today's local share markets are also bouncing from massive sell offs yesterday, helped on better than previous Chinese home prices data, with Shanghai Composite up +0.04%, Australian ASX +0.74%, and Nikkei +0.22%.

To the upside, immediate resistance for AUD/JPY shows at recent session highs/Tuesday's lows 96.38/46, followed by Feb 15 highs at 96.70, and Wednesday's highs at 97.10. To the downside, closest support lies at Feb lows 95.77, followed by session/Feb 15 lows 95.63/53, and Feb 11/yesterday's lows at 95.16/05.

Feb 22, 2013

Forex: EUR/USD, bearish storm set to continue?

Poor Eurozone data was a burden too heavy to carry for the Euro, which fell to near a 3-month low against the US Dollar, which has recently enjoyed sizeable bids on expectations that the wisdom of QE in the US is losing its momentum, and that sooner rather than later, Bernanke and Co. may start to slowly withdraw the stimulus.

Session Recap: RBA Stevens steals the show to the Japanese

As written in the headline, the Asian session was dominated by one name, and that is RBA Governor Glenn Stevens, who today, after testifying before the House of Representatives Standing Committee on Economics in Canberra, threw cold water to all the RBA cut calls, by sounding surprisingly less dovish-than-usual. He said a good deal of interest rate stimulus in pipeline, which is suggestive that rate cuts have been reduced enough for now.