Opened at $1.0262 in Asia after lows of $1.0232 in NY as the EUR fell back on EU bank capital concerns, Hungary and French sovereign downgrade fears. Strong US ADP and ISM data helped the USD to firm and encouraged a rally in US equities. Asian trading has largely been lacklustre with the aussie penned into a $1.0225-65 for the most part until later EUR pressure extended the move down to $1.0206. Support is seen towards $1.0200 and the 100 day MA at $1.0190, with offers not really seen until $1.0300/05. AUD/JPY slipped lower despite a firming USD/JPY to Y78.82 from Y79.21 and AUD/NZD fell from NZ$1.3150 to NZ$1.3115. EUR/AUD pushed down to A$1.2465 in early trade before a recovery to A$1.2508, but requires a move back up through A$1.2650 to have a chance of reversing the recent strong downtrend. Focus today will largely be on the US NFP data this afternoon ahead of Monday’s Merkel/Sarkozy meeting.
EasyForexNews Research Team