Talking Points:
• Equities and Yen crosses climbed to start the week, but momentum has cooled as resistance comes into view
• The Australian Dollar posted its biggest rally in weeks after an RBA hold, but how does it rally?
• Euro faces Greek timelines, the Dollar FOMC minutes and Yen a BoJ decision in the upcoming session
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This past session opened to a strong moves for the S&P 500, Dollar and Aussie pairs. However, each of those drives seemed to lose traction heading into new session. Most distinctly motivated was the Australian currency which rallied after the RBA held its benchmark rate at 2.25 percent against a hefty market consensus for a follow up 25 bp cut to February's easing. A 'no change' move isn't as motivating as a proactive move like a hike or a cut. To leverage follow through, pair selection is particularly important. For the S&P 500's post-NFP rally and Dollar's data supported run, conviction for trend development was even less convincing. With more significant technical levels showing up across currencies and markets, next steps may require a stronger push but could also feed longer drives. Can the FOMC minutes spur the Dollar, will Greece milestones purge the Euro, does the BoJ decision direct carry traders to a reality of a stimulus plateau? We discuss these themes and their complimentary technical levels in today's Trading Video.
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