The US House of Representatives finally closed the deal on the country's budget after the Republicans and Democrats reached an agreement that is meant to reduce the US budget deficit without increasing taxes. This move is expected to prevent any government shutdown in January 2014, like what happened in October. However, it is still subject to approval by the US Senate and ultimately, President Barack Obama.
Later today, the US will also announce its Monthly Budget Statement for November. It could be a minor mover in today's trading.
Meanwhile in Japan, Domestic Corporate Goods Price Index grew within expectations, unlike the Machinery Orders which grew by a better-than-expected 17.8% over the past 12 months in October. Original expectation was at 15.0%, while previous growth was at 11.4%.
The USD/JPY pair has so far been struggling to break past the 103.30 barrier and has since fallen down the 103.00 zone yesterday. It is currently trading at 102.81, with initial resistance seen at 103.08, followed by 103.34. Meanwhile, initial support is at 102.24, followed by 101.99.
In the UK, main drivers for the sterling would likely be the US budget statement, as well as British Monetary Policy Committee member Dr. Martin Weale's speech later (1:00PM GMT).
The GBP/USD pair is currently dealing with a short-term overbought condition, although an upside trend is expected in the long term. It is currently trading at 1.6435, with initial resistance seen at 1.6482, followed by 1.6523. Meanwhile, initial support is at 1.6433, followed by 1.6392.
Australian Consumer Confidence slipped in December by 4.8% compared to a 1.9% increase in the previous month. Meanwhile, the Consumer Confidence Index also fell from 110.3 in the previous month (revised from 103.0), to just 105.0 in December.
The AUD/USD pair is back below the 0.9140 level after enjoying peaks above 0.9165 yesterday. It is currently trading at 0.9136, with initial resistance seen at 0.9210, followed by 0.9234. Meanwhile, initial support is at 0.9116, followed by 0.9093.
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