Closed in NY at $1.5788, after pulling back from an intraday high of $1.5829 (NY high $1.5817) in a quiet, London holiday session.
Rate recovered into early Asia, posting highs at $1.5793 before turning lower as early risk appetite quickly evaporated, the lowering in
Fonterra’s milk price forecast for 2012-13 weighed on the Kiwi and led the paring back in risk positions. Cable as pressed to extended lows of $1.5754, as stops were ‘fired-off’ through $1.5785-60, before meeting willing buyers positioned on approach to $1.5750 (traders mention that Asian sovereign demand interest seen in place between $1.5750/40 and expected to provide decent support). Rate recovered in late Asian afternoon trade, retesting the early highs at $1.5793, currently trading around $1.5789. A fairly light data calendar on the day, US consumer confidence at 1400GMT the stand out release, with all focus turning toward Friday’s Jackson Hole Symposium. Resistance remains at $1.5793 (50% $1.5829-1.5754), with stronger interest noted between $1.5800/10 ($1.5811 76.4%). Euro-sterling trend line rsst seen at stg0.7930/35.
EasyForexNews Research Team