FX News – Feb 4 2014: GBP/USD Rises on Positive UK PMI Construction Data

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The GBP/USD pair reached a daily high at the early part of today's European trading after the United Kingdom posted a better-than-expected PMI Construction figure for January.

The UK's PMI Construction number came out at 64.6, which was significantly higher than the expected 61.5, and was also higher than the previous 62.1. This is the highest figure the country has seen in 6.5 years. The news helped lift the GBP/USD pair above the 1.6300 area today. It is currently trading at 1.6340, with initial resistance seen at 1.6374, followed by 1.6415. Meanwhile, initial support is at 1.6221, followed by 1.6181.

Earlier today, the Reserve Bank of Australia's decision to maintain its cash rates at 2.5%, helped boost the AUD/USD pair past the 0.89 area. The positive trend was probably fueled by the notable absence of RBA Governor Glenn Stevens' oft-repeated statement that the aussie is 'uncomfortably high', which often led to a drop in the currency's value.

After the Governor's statement, the AUD/USD pair jumped from the 0.8760 area up to 0.8840, eventually peaking at about 0.8910 in today's trading. The mood has become slightly more subdued over the past few hours, however, as the pair slid under the 0.8900 area again. It is currently trading 0.8879, with initial resistance seen at 0.8793, followed by 0.8815. Meanwhile, initial support is at 0.8695, followed by 0.8673.

During the Asian session, the USD/JPY pair reached a 1.5-month low at 100.77 primarily due to the poor opening of the Nikkei. In addition to that, the market expects a poor NFP data later this week, which also led to a weaker greenback. As the day progressed, however, the pair was able to return to the 101.00 level. It is currently trading at 101.24, with initial resistance seen at 101.71, followed by 101.96. Meanwhile, initial support is at 100.06, followed by 99.81.

By FX Strategy Team, Published on 4th of February 2014
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