A sharp rejection of 1.0200 in the AUD/USD and 0.78 in the NZD/USD leave the short-term charts looking a lot less constructive. Both pairs gained strongly overnight after a larger-than-expected uptake of EUR489 billion in the ECB’s 3-year lending facility was initially greeted with enthusiasm, but markets eventually concluded that the liquidity auction was nothing more than a one-off stop gap measure that, while helpful, does not fundamentally address deep seated EU sovereign solvency and default risks. The AUD/USD is at 1.0085 versus 1.0132 late Wednesday, while the NZD/USD is at 0.7689 versus 0.7710 late Wednesday. Investors will be watching for New Zealand 3Q GDP Thursday. Later in the global trading day the U.S. calendar includes the third and final revision to 3Q GDP, along with Michigan consumer sentiment and jobless claims. AUD/USD may initially find support at 1.0030, while the NZD should run into bids around 0.7650 in local trading.
EasyForexNews Research Team