The pair closed in NY Thursday at $1.3034 after rate had been pressed to extended pullback lows of $1.3011 after the dollar was given a general boost by a strong dollar buy program. Early trade in Asia consolidated the corrective pullback with trade contained within a tight range around $1.3040 before it dipped to session lows of $1.3022, recovered to again meet resistance ahead of $1.3050 which capped highs at $1.3047. Rate then settled into a tighter range around $1.3040 for the balance of the session, trading around $1.3043 into Europe. Asian traders still mention that we could see dollar recycling from local sovereigns, following on from recent dollar buys, suggest they may still be interested buyers into dips (have already been seen overnight selling back into dollar-yen’s extended recovery). Reported demand is seen into $1.3000, a break below to expose next band of support between $1.2970-50. Above $1.3050 and minor resistance seen into $1.3080 ahead of stronger offers at $1.3100. Today Germany trade data at 0600 GMT provides early interest, ahead of a light US data calendar, though market could be open to headline reactions as the G7 FinMin/Central bankers meeting begins.
