The AUD/USD pair broke past the 0.9400 level yesterday, but failed to sustain it as the day progressed. The pair picked up again during today’s Asian session, opening at 0.9368. Number of events in the US may dictate the direction of the pair later today, including the Consumer Price Index, Jobless Claims data, and a speech by Fed Chairwoman Janet Yellen. The pair is currently trading at 0.9376. Initial resistance for the pair is at 0.9424, followed by 0.9447. Meanwhile, initial support is at 0.9367, followed by 0.9343.
Earlier today, Japan released a number of data that helped boost the yen against the greenback, albeit only briefly. Its QoQ GDP for Q1 was at 1.5 per cent, better than the 1.0 per cent expected, and the previous 0.2 per cent. Meanwhile, its Annualised GDP for Q1 was at a whopping 5.9 per cent, better than 4.2 per cent expected, and the previous 0.3 per cent. Then the GDP Deflator for Q1 went flat over the past 12 months, which was better than the expected contraction by 0.1 per cent, and the previous contraction by 0.9 per cent.
As of May 9, meanwhile, Japan’s foreign bond investment came out at ¥345.7 billion, where it was previously ¥70.8 billion. Meanwhile, foreign investment in Japan stocks for the same period was ¥-153.9 billion, where it was previously ¥195.9 billion.
The positive news from Japan helped lift the yen versus the greenback, dragging down the USD/JPY pair just above 101.70. But as the day progressed, however, the greenback regained its strength, which again lifted the pair. It is currently trading at 101.95, with initial resistance seen at 102.09, followed by 102.35. Meanwhile, initial support is at 101.51, followed by 101.26.
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