The AUD/USD pair is showing signs of recovery after being battered yesterday due to the weak Chinese Manufacturing PMI. It has once again returned to the 0.88 level early in today's Asian session, and peaked at the 0.8820 area around the time of the release of Australia's Producer Price Index (PPI).
The pair performed well despite the fact that the PPI came out lower than expected. In Q4, it was only up by 0.2% compared to the previous quarter (0.9% rise was expected), while it only grew by 1.9% over the past 12 months (2.7% growth was expected).
The AUD/USD pair is currently trading at 0.8796, with initial resistance seen at 0.8842, followed by 0.8864. Meanwhile, initial support is at 0.8748, followed by 0.8726.
Earlier today, RBNZ's Governor Graeme Wheeler gave a speech at the Canterbury Employers' Chamber of Commerce, wherein he said that the bank will adjust (i.e. increase) rates soon. He also added that the NZD remains overvalued and that he would like to see it lower.
The speech led to a weaker NZD especially against the USD. This stopped the NZD/USD's attempt to return to the 0.8200 area late in yesterday's trading. Instead, it slid sharply and settled just above the 0.8140 area. it is currently trading at 0.8158, with initial resistance seen at 0.8184, followed by 0.8204. Meanwhile, initial support is at 0.8091, followed by 0.8070.
Also in the Pacific, the USD/JPY pair continued to struggle to break past the 103.00 area in today's Asian session. It peaked at around 102.93 earlier today, but was dragged down in less than an hour. The pair already made several attempts to return to the 103.00 zone since yesterday, but it mostly remained within a tight range between 102.70-102.80.
The USD/JPY pair is currently trading at 102.71, with initial resistance seen at 103.24, followed by 103.49. Meanwhile, initial support is at 102.41, followed by 102.16.
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