FX News – December 16: Busy Day for EUR; AUD Sinks Over the Weekend

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Today will be a busy day for the euro, as several events in the region are up today. France already released its PMI data earlier, with the Manufacturing PMI down from 48.4 to 47.1, while the Services PMI was down from 48.0 to 47.4. Germany, meanwhile, released mixed PMI data, with its Manufacturing PMI up from 52.7 to 54.2, while the Services PMI down from 55.7 to 54.0. The EU's PMI was mostly positive, as the Manufacturing PMI was up from 51.6 to 52.7, while the Composite PMI was up from 51.7 to 52.1. Its Services PMI, however, was down from 51.2 to 51.0.

The EU will also release its Trade Balance data less than an hour from now. Later today, ECB President Mario Draghi will deliver a speech (2:00PM GMT).

The EUR/USD opened the Asian session on a low note at 1.3738, but has since recovered and is currently trading at 1.3770. Initial resistance for the pair is at 1.3753, followed by 1.3788. Meanwhile, initial support is at 1.3692, followed by 1.3657.

The AUD/USD pair spent most of the weekend at around the 0.8920-0.8960 range after dropping sharply late on Friday. It continued hovering around the range throughout today, and actually dipped a little due to the disappointing Chinese PMI. It came out at 47.1, which was lower than the previous 48.4 and the expected growth to 49.1.

The pair is currently trading at 0.8941, with initial resistance seen at 0.8993, followed by 0.9015. Meanwhile, initial support is at 0.8934, followed by 0.8912.

Taper Talk Continues

The much-awaited FOMC meeting will start tomorrow, Tuesday, and almost everyone expects the Fed to start tapering its QE program. Otherwise, it might be another non-event as what happened during the expected 'Septaper'. So make sure you keep close watch on the Fed's statement later this week.

By FX Strategy Team, Published on 16th of December 2013
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