A flurry of activity is expected as the day progresses due to the market's anticipation of the US FOMC minutes. The minutes, which will be released at 7:00PM GMT today, will be accompanied with a number of other US events, including housing data, and the country's Producer Price Index for January.
The EUR/USD pair has enjoyed a quick spike above the 1.3770 area earlier during the Asian session. It was unable to sustain the run, however, as it is currently experiencing a downtrend. Despite the losses at the opening of the European session, the pair is still faring fairly well after yesterday's jump late in the US session. It is currently trading at 1.3758, with initial resistance seen at 1.3803, followed by 1.3838. Meanwhile, initial support is at 1.3726, followed by 1.3692.
As for the USD/JPY pair, it continued with the downtrend that began yesterday, which saw it take a sharp rise from 101.80 to 102.80 before sliding down to its current level. Yesterday's jump was mainly due to the Bank of Japan's (BoJ) Monetary Policy Statement wherein they said that they would maintain their annual easing plan. However, much of the gains were erased yesterday by the poor performance of the Nikkei, and the poor data from the US on Tuesday.
The USD/JPY pair is currently trading at 102.13, with initial resistance seen at 103.06, followed by 103.31. Meanwhile, initial support is at 102.06, followed by 101.80.
The AUD/USD pair pretty much erased its losses earlier in the Asian session ahead of the FOMC minutes. This came after yesterday's run, which brought the pair to 5-week highs. It lost steam around yesterday's European session, however, before making a recovery during the US session. The pair then dropped below the 0.9000 zone at the opening of today's Asian session. It is now trading at 0.9024, with initial resistance seen at 0.9099, followed by 0.9121. Meanwhile, initial support is at 0.9015, followed by 0.8993.
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