FX News - Apr 3 2014: Mixed Data Drags Down AUD/USD

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Mixed data from Australia and China were enough to send the AUD/USD pair lower in today’s Asian session. Australia’s Retail Sales in February came out at 0.2%, which was lower than the expected 0.3% growth. On the flip side, however, the country’s trade balance in February was at 1.2 billion, higher than the expected 850 million. Exports remained flat while imports were up by 1% during the same period. Meanwhile, China released its Non-Manufacturing PMI in March, which was at 54.5, lower than the previous month’s 55.0. On a positive note, the HSBC China Services PMI in March came out at 51.9, higher than the previous period’s 51.0.

In addition to these events, Reserve Bank of Australia Governor Glenn Stevens spoke earlier, saying that there are positive signs that the country will be able to manage the decline in the mining industry, but added that it is ‘far too soon’ to declare success.

After opening today’s Asian session at 0.9246, the AUD/USD pair slid sharply as soon as Australia’s Retail Sales and Trade Balance data were released. Today’s low so far has been at 0.9211, although there are no signs of the pair making a recovery any time soon. It is currently trading at 0.9215, with initial resistance seen at 0.9278, followed by 0.9301. Meanwhile, initial support is at 0.9235, followed by 0.9212.

As for the USD/JPY, the pair continued to rise in today’s Asian session as it broke past the 104.00 area. This takes the pair to its highest level since late January this year. The pair opened at 103.86, and has since risen in value over the past few hours. It eventually peaked at 104.07 today before settling down at its current level at 103.96. Initial resistance for the pair is at 104.10, followed by 104.36. Meanwhile, initial support is at 103.73, followed by 103.47.

By FX Strategy Team, Published on 3rd of April 2014
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