RBA Stepping Up Intervention Rhetoric

The FX markets consolidate ahead of the Thanksgiving Holiday in the US this week. The start of the week saw a failure of some technical levels that I feel may correct further as positioning is adjusted ahead of the holiday, with 1.3600, 1.6260 and 102.00 all holding firm. RBA’s Deputy Governor Philip Lowe has raised the intervention stakes as he said the AUD could in time move lower, suggesting the Australian Central Bank could intervene with the market taking this recent threat that the RBA are upping the ante to weaken AUD.

BoJ minutes from the October meeting didn’t reveal anything new with regards to policy, with a minority of members suggesting the 2% 2015 inflation target is going to be difficult to achieve and the Japanese Central Bank should adjust their statement to reflect the difficulties. I expect month end rebalancing and positioning adjustments to be the main drivers in the FX market with housing data and consumer confidence released from the US afternoon along with the BoE’s big guns Carney, Bean, Dale and Broadbent all appearing before the Treasury Select Committee at 10am this morning to discuss the Bank’s November inflation report.

EUR/USD
Supports 1.3480-1.3425-1.3370 | Resistance 1.3600-1.3630-1.3685

USD/JPY
Supports 101.00-100.60-100.20 | Resistance 101.85-102.00-102.50

GBP/USD
Supports 1.6140-1.6100-1.6070 | Resistance 1.6230-1.6260-1.6310

Disclosure: FX Solutions assumes no responsibility for errors, inaccuracies or omissions in these materials. FX Solutions does not warrant the accuracy or completeness of the information, text, graphics, links or other items contained within these materials. FX Solutions shall not be liable for any special, indirect, incidental, or consequential damages, including without limitation losses, lost revenues, or lost profits that may result from these materials.

The products offered by FX Solutions are leveraged products which carry a high level of risk to your capital with the possibility of losing more than your initial investment and may not be suitable for all investors. Ensure you fully understand the risks involved and seek independent advice if necessary.