Closed in NY at $1.3240 after recovering off session lows of $1.3209. Rate retained a subdued attitude through most of Asia, with more attention seen on yen plays, Japan returning after the Monday holiday (though only in Tues-Weds this week), and Aussie ahead of the RBA rate decision. Early trade was restricted within a range of $1.3234/44 with rate initially dipping to $1.3237 before spiking up to $1.3260 as the RBA went for the larger 50bp cut option, initial react sales of AUD pressing the rate down before bouncing back on EUR/AUD demand. Rate drifted back to settle within a range of $1.3240/50 into European trade. May Day holidays close a good number of European centres today and expected to continue the recent subdued conditions. Growth remains as the main interest in markets, today’s UK PMI data the morning’s focus 0830GMT ahead of this afternoon’s US ISM at 1400GMT. European PMI’s , ECB rate decision and press conference Thursday and US employment report to come this week, though Asian holidays to make for thin markets. Support $1.3210/00, resistance $1.3265/75.
EasyForexNews Research Team