The aussie has recovered from yesterday's beating from the greenback, after positive news came out from Australia.
Australia’s building approvals went up by 18.5% in April, beating analysts' expectations of just a 7.7% rise. Capital expenditure is also set to increase during the latter part of the year and early next year. These news helped lift the AUD/USD, which is currently trading at around 0.967, back from yesterday's lows at 0.955.
With the news, the Reserve Bank is expected not to do another round of cuts when it announces its interest rate decision on Tuesday next week. However, the RBA's decision may also be affected by upcoming economic data from the US and China. The US will announce its Q1 preliminary GDP, and its initial jobless claims later today. Meanwhile, China will release its manufacturing data on Saturday.
Initial resistance for the AUD/USD is seen at 0.9725, followed by 0.9750. On the other hand, initial support is seen at 0.9581, followed by 0.9557.
As for the EUR/USD, the pair is currently trading at around the 1.296 level after taking a massive dip on Tuesday to 1.285. However, it remains to be seen if the pair can sustain today's rally as the US economy continues to show more signs of recovery. This is especially the case later with high volatility expected as a number of important economic data will come from Europe (confidence data) and the US (jobless claims, annualised GDP, pending home sales, etc.).
Initial resistance for the pair is seen at 1.3030, followed by 1.3063. Meawhile, initial support is seen at 1.2889, followed by 1.2857.
The USD slipped against the JPY as it is currently trading at around 100.67. Again, whether or not the USD recovers in the short term depends on the upcoming US economic data.
Initial resistance for the USD/JPY is at 101.86, followed by 102.12. Meanwhile, initial support is at 100.01, followed by 99.76.
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