Closed in NY at $1.3054 after rate had pulled back from a late session high at $1.3076. Rate nudged higher in early Asian dealing, pushing up to challenge reported offers placed at $1.3065. Failure here prompted a corrective pullback, aided by decent euro-yen sales from Japanese banks, the move down prompting spec longs to cover back, taking the rate to lows of $1.3046. RBA 25bp cut was as expected but the hawkish statement which accompanied prompted a quick bounce higher in Aussie-dollar, which in turn helped euro-dollar to recover back to retest the $1.3065 level. Offers again thwarted attempts to move higher and rate settled between $1.3050/60 ahead of the European open. Asian traders have reported that sell interest seen placed from $1.3065, with offers dotted through to the next barrier at $1.3100. $1.3115 has system stops above. Bids remain in place between $1.3050/40 ahead of $1.3025/20. Eurozone PPI at 1000GMT provides data interest this morning though main interest will be on Greece/Spain debt developments, with Eurozone periphery yields having eased in recent sessions.
EasyForexNews Research Team