Opened Asia at $1.2809, touched an early high of $1.2815 before turning lower but demand placed into $1.2800 provided early cushioning. A recovery to $1.2810 prompted stronger sell interest to emerge and take rate through $1.2800, with stops triggered on the break of $1.2790/85 extending the move to $1.2771. Rate recovered to $1.2786 before settling between $1.2775/85 into a mainly Easter holiday closed Europe session. The main driver in Asian trade was the reaction in the Aussie dollar to the release of China PMI, the March manufacturing index showed improvement from February, but came in below forecast medians. This in turn triggered Japanese sales of Aussie-yen which impacted on euro-yen then euro-dollar. With Europe’s long Easter weekend continues markets expected to be subdued ahead of the NY open with release of US PMI and ISM data the key afternoon events. Focus this week will turn toward Thursday’s ECB rate decision, no change expected but interest to be on Draghi’s press conference, especially after Cyprus events. US employment data Friday, expectations for another strong showing, though Thursday’s weekly claims will provide interim interest.
EasyForexNews Research Team