FX News - May 19 2014: AUD/USD, USD/JPY Drop at Asian Session

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The AUD/USD pair is off to a rough Monday as traders to continue to struggle to break through the 0.9400 level over the past several days. While there are no major events in today’s trading session, the market awaits a number of key data and reports from Australia, including the release of the minutes of the RBA’s previous meeting (20 May, 1:30AM GMT), the Westpac Consumer Confidence report in May (21 May, 12:30AM GMT), and Australia’s Consumer Inflation Expectation in April (22 May 1:00AM GMT). The pair opened pretty much as the same level as it ended last week at 0.9364, and has dropped by almost 30 pips as the day progressed, hitting a low of 0.9346. It is currently trading at 0.9355, with initial resistance seen at 0.9389, followed by 0.9412. Meanwhile, initial support is at 0.9349, followed by 0.9325.

Then there’s the USD/JPY pair, which continues to struggle due to the weak greenback, continued unrest in Ukraine, and the violence against Chinese nationals in Vietnam. As for economic events, there are several that might affect the pair in this week’s trading. These include the Bank of Japan’s Interest Rate Decision and Monetary Policy Statement (21 May, 3:00AM GMT), a speech by Fed Chairwoman Janet Yellen (21 May, 3:00PM GMT), the FOMC Minutes (21 May, 6:00PM GMT), and US employment and housing data.

The USD/JPY pair opened the Asian session today on a low note at 101.54, before dropping further, bottoming out at 101.24. It is currently making a slight recovery as it is trading at 101.37. Initial resistance for the pair is at 101.60, followed by 101.85. Meanwhile, initial support is at 101.27, followed by 101.01.

By FX Strategy Team, Published on 19th of May 2014
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