Closed in NY Friday at $1.2986 having pivoted $1.3000 through the day, within a range of $1.3029-1.2968, with month end dollar demand providing a counter against further upside gains. Rate drifted off to $1.2973 into early Asia Monday, touching a low of $1.2973 before picking up demand that lifted it back to $1.3000. Demand for euro-Aussie was then cited for the move through $1.3000, with upside momentum gaining pace as rate pushed through $1.3025/30, the move triggering stops, with more going off above $1.3040, that took rate on to $1.3048. Option barrier interest at $1.3050 said to be drawing protective selling ahead, a break to open a move on toward $1.3070. Risk remains in favour, aided by an easing in Eurozone periphery bond yields, with release of supportive Chinese PMI data aiding the move. Australian retail sales data provided a slight dampener, while Friday’s downgrading of EFSF and ESM basically brushed aside. Euro-dollar drifted back off to $1.3027 but seen supported into early Europe. Eurozone final PMI data in focus, along with further European talks on Greece.
EasyForexNews Research Team