Key Economic Data - Coming Up Today(All Times GMT+2)
The EURUSD was range bound yesterday after opening 30 pips over the weekend. The pair traded in a restricted 70 pip range between 1.1292 and 1.1362. Strong Spanish and Italian Manufacturing data helped support the Euro currency while the Chinese and US Manufacturing disappointed and the same data in the UK made a small advance. Weak Personal Spending data in the US weighed on the dollar and US stocks while US President Obama outlined his 'Middle-Class Economics' FY2016 Budget. Yesterday's main talking points were the meeting of the Greek President Tsipras and Finance Minister Varoufakis across Europe with the main highlight being Varoufakis meeting with George Osborne the UK Chancellor at Downing Street, the other development dominating news headlines was the building tensions in Ukraine. The meeting in London was significant due to the growing Euro-skeptism in the UK and the rise to popularity by UKIP and Nigel Farage in mainstream politics. In Ukraine efforts by the Pro-Russian rebels to raise 100 000 troops made headlines while reports have suggested that the US is preparing to support Ukraine with Anti-Tank and military support to Ukraine. The EURUSD is now trading at 1.1320 exactly in the middle of this week's range. The USDRUB currently trades at 66 down from a high of 72 last week.
Overnight in Australia the Central Bank unexpectedly cut interest rates from 2.5% to 2.25% following Canada lead two weeks ago in lowering borrowing costs amid falling commodity prices. Australia’s Central Bank Governor had previously described the Aussie as overvalued and above its preference of an exchange rate around 0.75. The RBA Rate Statement did not rule out further rate cuts and expressed concern with below trend growth in the economy as well as weak domestic demand. The AUDUSD crashed from 0.7825 before the rate cut to 0.7625 over the course of 10 minutes of selling action (see AUDUSD 5 Minute Chart). The AUDUSD has declined from a record high of 1.1080 in 2011 and as recently as September 2014 the pair had trade at 0.94. In other data the Australian trade deficit shrunk from -0.85B to -0.45B. In Europe Spanish Unemployment Change increased by 78 000. This data shows that there was a large increase in the persons unemployed in the economy and is concerning for the struggling Spanish economy already burdened with an unemployment rate of 24.1%. Still to come today GBP Construction PMI and EUR inflation statistics.
EURUSD Support areas include 1.13, 1.1250, 1.1200, 1.1150 1.1100, 1.1050, 1.10, 1.0950. Resistance levels above are at 1.14, 1.15, 1.16, 1.1650, 1.1700, 1.1800, 1.1975, 1.2000, 1.2200, 1.2300, 1.2380, 1.2402.
EURUSD 5 Minute Chart
EURUSD 30 Minute Chart
AUDUSD 5 Minute Chart
EURUSD Pivot Point Table