FX News – Feb 5 2014: AUD Opens Softer VS USD & NZD

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The AUD/USD pair opened today's Asian session on a soft note, mostly due to profit-taking. Yesterday, the aussie rallied against the greenback after RBA Governor Glenn Stevens took a neutral stance on its interest rate, saying that it would maintain rates at 2.5% in the foreseeable future. In addition, there was the noted absence of any mention about the aussie being overvalued unlike in previous statements.

The pair topped at 0.8941 in yesterday's session, but went on a gentle downward slope towards the opening of the Asian session. It is currently trading at 0.8881, with initial resistance seen at 0.9047, followed by 0.9069. Meanwhile, initial support is at 0.8832, followed by 0.8809.

The AUD/NZD pair also opened softer in today's session after New Zealand posted positive employment change data earlier today. It came out at 1.1%, which was higher than the expected growth of only 0.6%. The country's unemployment rate also met market expectations that it would come out lower at 6.0% compared to the previous 6.2%. These reports helped lift the kiwi against the aussie, which then dragged the pair to its current level at 1.0835. Initial resistance for the pair is at 1.0981, followed by 1.1008. Meanwhile, initial support is at 1.0848, followed by 1.0821.

As for the EUR/USD pair, it is currently on consolidation mode as it traded on a range between 1.3480 and 1.3540 so far this week. Reports that could affect the pair today include the EU's Marikit Services PMI and Retail Sales, as well as the US' Marikit Services PMI and ISM Non-Manufacturing PMI. Tomorrow, the ECB will also announce its interest rate decision, which is largely expected to remain at 0.25%.

The EUR/USD pair is currently trading at 1.3517, with initial resistance at 1.3528, followed by 1.3561. Meanwhile, initial support is at 1.3481, followed by 1.3447.

By FX Strategy Team, Published on 5th of February 2014
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