FX News – August 1: AUD Drops Below 0.90, EUR/USD & USD/JPY Stay Flat

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 The AUD/USD pair continued its slide yesterday during the European session where it fell below the 0.9000 level. It briefly resurfaced late in the American session yesterday, before dropping to the 0.8931 level.

The pair was affected by positive GDP Data (annualised) from the US, which rose from 1.1% (revised from 1.8%) to 1.7%, beating expectations of just 1.2%. The US Federal Open Market Committee (FOMC) also maintained its federal funds target range at 0-0.25% and announced that it would keep buying bonds at $85 billion per month. There was no news about QE tapering.

Earlier in today's trading, the pair has moved little so far after the release of China's HSBC Manufacturing PMI. It met analysts' expectations that the numbers would drop from the previous 48.2 to 47.7.

The AUD/USD pair is currently trading at 0.8965, with initial resistance seen at 0.9029, followed by 0.9052. Meanwhile, initial support is at 0.8886, followed by 0.8864.

As for the EUR/USD, the pair swung wildly during the latter part of yesterday's trading. It initially dropped to a low of 1.3220, before spiking up several hours later to 1.3340 after the FOMC statement. In general, however, the pair continued to hover within a 150-pip range throughout the week.

The EUR/USD pair is currently trading at 1.3275, with initial resistance seen at 1.3392, followed by 1.3425. Meanwhile, initial support is at 1.3257, followed by 1.3224.

Like the EUR/USD pair, the USD/JPY also remained flat so far this week. It has maintained a level just above 98.00 for most of the week, as traders await the US Nonfarm Payrolls data to be released tomorrow, Friday, at 12:30PM GMT. 

The USD/JPY pair is currently trading at 98.33, with initial resistance seen at 98.22, followed by 98.46. Meanwhile, initial support is at 97.24, followed by 96.99.

By FX Strategy Team, Published on 1st of August 2013
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