The FX markets played second fiddle to the equity markets as Asian bourses followed the Dow into the red. Early taper concerns from the Federal Reserve looked to initiate profit taking ahead of Central Bank meetings tomorrow and the US jobs report on Friday.
AUD broke the 0.9050 support level as the Australian Q3 GDP came in below expectations at 0.6% versus the consensus of 0.7% with the Australian treasurer Joe Hockey adding that the budget for 2013-2014 had ‘ deteriorated significantly’ which will mean the Government GDP forecast will not be achieved.
The JPY slide has halted for the moment as $/JPY retreats from 103.50 to 102.20 within 24 hours as the Nikkei mirrors global equities, closing down over 2% with BoJ board member Sato adding that the magnitude of the April 2013 QE launch in Japan would be difficult to replicate.
The data this morning includes service PMI data from the EU & UK with GDP and retail sales also released from the Eurozone as the US session brings us the ADP employment report, US trade balance, new home sales and finally the latest thoughts from the Beige book.
EUR/USD
Supports 1.3550-1.3490-1.3425 | Resistance 1.3600-1.3630-1.3685
USD/JPY
Supports 102.20-101.75-101.50 | Resistance 103.50-103.80-104.30
GBP/USD
Supports 1.6340-1.6250-1.6180 | Resistance 1.6450-1.6500-1.6620
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.