FX News - Mar 5 2014: AUD Gets Boost in Asian Session

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Today’s Asian session has been a good one for the aussie, as Australia and China released a series of positive data. The day began with Australia’s AIG Performance of Services Index for February, which came out at 55.2, up from the previous month’s 49.3. The country also posted better-than-expected Gross Domestic Product data for Q4, as it grew by 2.8% (versus 2.5% expected) during the last 12 months, and by 0.8% (versus 0.7% expected) compared to the previous quarter. Then finally, China came out with its HSBC Services PMI for February, which was at 51.0, higher than the previous month’s 50.7.

All these helped the AUD/USD pair make the gradual return near the 0.9000 for the first time this month. It has taken a beating over the past few days due to the weak Chinese PMI on Monday, and the return of the overvalued aussie in the Reserve Bank of Australia’s (RBA) monetary policy statement yesterday.

The pair peaked at 0.8996 during the early part of today’s Asian session, but was unable to sustain the level, as it eventually fell to a low of 0.8937. It is trying to make a comeback at the moment as it is trading at 0.8973, with initial resistance seen at 0.8992, followed by 0.9014. Meanwhile, initial support is at 0.8930, followed by 0.8908.

As for the EUR/USD pair, it is currently on a steady decline, a trend that began earlier this week.  Expect more volatility from the pair later, as both Europe and the United States are packed with a number of important events. These include the Eurozone’s Marikit Services PMI for February, the region’s GDP, and Retail Sales. Meanwhile, the United States also has its Marikit Services PMI for February and the ISM Non-Manufacturing PMI, just to name a few of these events. The pair is currently trading at 1.3733, with initial resistance seen at 1.3792, followed by 1.3827. Meanwhile, initial support is at 1.3730, followed by 1.3695.

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