FX News – May 23

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EUR/USD Nears 1.30

The EUR/USD has somehow maintained its good run so far this week as it is currently trading at close to 1.30. However, the downward trend that we have seen throughout May is likely to continue as the Eurozone continues to struggle with its economy.

In related news, the EU's Consumer Confidence data for May is set to be announced at 14GMT today. From the previous -22.3, analysts expect the number to rise a bit higher to -21.8. Aside from that, PMI data released earlier today showed a little improvement, with the Manufacturing PMI moving from the previous 46.9 to 47.7.

Initial resistance for the pair is seen at 1.2929, followed by 1.2961. Meanwhile, initial support is at 1.2762, followed by 1.2730.

AUD/USD Downtrend Seen to Continue

As for the AUD/USD, pair, it has picked up from an intraday low of under 0.960, and is currently at 0.9719. Despite this recovery, however, the pair's current downtrend is seen to continue, which may put it at 0.95 by the end of the year.

Initial resistance for the pair is seen at 0.9764, followed by 0.9789. Meanwhile, initial support is seen at 0.9595, followed by 0.9572.

USD/JPY Undergoes Volatility

From reaching a little over the 103.50 level yesterday, the USD/JPY has seen a massive drop in today's trade. It fell slightly above 101.00, and is currently trading at 101.51. The volatility may be temporary, however, as the BoJ's policy leads to a weak JPY, which is seen to be at 105.00 against the USD. The pair might also be affected by a number of announcements from the US today and tomorrow, including the Housing Price Index and the Manufacturing PMI. BoJ Governor Kuroda is also set to hold a press conference tomorrow at 2:55GMT regarding the country's monetary policies.

Initial resistance for the pair is seen at 104.16, followed by 104.42. Meanwhile, initial resistance is seen at 102.75, followed by 102.49.

By FX Strategy Team, Published on 23rd of May 2013
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