USD Suffers as Key Support Breaks, EURUSD, AUDUSD Benefit - US Market Open
MARKET DEVELOPMENT –USD Suffers on Technical Break, EURUSD, AUDUSD Benefit
DailyFX Q2 2019 FX Trading Forecasts
USD: The USD is on the defensive to begin the week, trading with losses across the board as the greenback breaks below key technical support (below 200DMA). In turn, the USD now sits at the psychological 96.00 handle, consequently curbing further losses for now. Little in the way on the economic calendar today, as such, focus will be on Fed Chair Powell tomorrow, who will comment on the economic outlook.
EUR: Mixed IFO data had been shrugged off by the Euro, which continues to challenge the 1.14 handle to the upside, as last week’s announcements from the Fed & ECB drive a sizeable shift in sentiment for the currency. EURUSD has been muted throughout the session, thus the $2bln option expiry at 1.14 could hold for now. (full list of option expiry board)
AUD: Shorts continue to feel the squeeze with the Aussie hovering around 0.6950. Topside resistance is situated at 0.7000, which could see gains somewhat limit above the psychological figure. Markets perceived comments from RBA Governor Lowe to be less dovish, having stated that more infrastructure investment would benefit the country’s struggling economy. However, despite this, money markets are pretty certain that another 25bps cut will occur at the July 2nd meeting with interbank futures attaching an 84% likelihood of a cut.
Source: DailyFX, Thomson Reuters
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--- Written by Justin McQueen, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.