Closed in NY at $1.2304 after recovering on reported light short covering from session lows of $1.2266. Rate marked highs into early Asia at $1.2308 before turning lower, the rate settling between $1.2287/96 with moves within determined by reaction to the RBA Report, suggesting that the strong AUD could have a negative effect on future growth, with recovery efforts then squeezed lower on react to the release of weaker than expected China traded data. Rate opens Europe around $1.2290 following a subdued overnight session. Asian reports suggest that sell interest, though higher up looks to outweigh stop demand interest so there fore expect any recovery effort to be laboured. Initial offers seen to $1.2310 with stops above, with main sell interest seen concentrated above $1.2365, stronger above $1.2400, especially toward $1.2450, the $1.2443/44 area providing a technical double-top. Support seen into $1.2260, with interest extending down to $1.2240 with stops below. Germany CPI due at 0600GMT ahead of French IP at 0645GMT to provide early interest. Very light US calendar to end the week.
EasyForexNews Research Team