FX News - Mar 11 2014: Market Reacts to NAB Data, BoJ Event Coming Up

FX Strategy Articles > FX Trading Tips

The National Australia Bank (NAB) released Australia’s Business Confidence and Conditions during today’s Asian session, which came out lower than previous figures. Where the previous Business Conditions number was at 4, it came out at 0 today, while Business Confidence also dropped slightly from 9 to 7.

This led to an initial shock to the AUD/USD pair, which immediately plummeted to 0.9010 after opening at 0.9023. However, the reaction was short-lived as the pair began to recover soon after that. It is currently trading at 0.9035, with initial resistance at 0.9043, followed by 0.9066. Meanwhile, initial support is at 0.8989, followed by 0.8967.

As for the NZD/USD pair, it has been rising steadily since the opening of the Asian session as the market awaits the Reserve Bank of New Zealand’s (RBNZ) interest rate decision on Wednesday (8:00PM GMT, or early morning Thursday in New Zealand). The Bank is largely expected to begin raising rates from the current 2.5% to 2.75%.

The pair opened today’s session at 0.8468, before jumping over the past two and a half hours to its current level at 0.8482. Initial resistance is at 0.8496, followed by 0.8517. Meanwhile, initial support is at 0.8454, followed by 0.8433.

BoJ Interest Rate Decision Coming Up

The biggest event in today’s Asian session is without a doubt the interest rate decision of the Bank of Japan (BoJ) and the monetary policy statement that will accompany it. Already we see some activity in the USD/JPY pair. It opened at 103.26, and has been on a steady rise since then. It is currently trading 103.36, with initial resistance seen at 103.59, followed by 103.85. Meanwhile, initial support is at 103.10, followed by 102.84.

By FX Strategy Team, Published on 11th of March 2014
eTorro - Trading Starts Here

Start Trading Forex with up to $10,000

  • 100s Videos and FX Strategy articles
  • Advice from our FX traders
  • Practive free with using real time