FX News - October 31: FOMC Statement Helps USD Stay Steady Vs EUR

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The FOMC’s statement yesterday helped strengthen the greenback, which in turn prevented any significant effect on the currency’s performance in today’s trading. This is despite less-than-stellar US data that came out earlier. Initial Jobless Claims until 25 October came out worse than expected at 340K. Analysts’ expectations were at 339K. In addition, Continuing Jobless Claims also came out higher at 2.881M compared to the expected 2.870M.

In fact, the greenback only performed even better against the euro in today’s trading. This may also be attributed to the poor data that came out of the Eurozone. The region’s CPI for October only rose by 0.7% over the past 12 months instead of the expected 1.1%. Meanwhile, Core CPI rose by 0.8% over the same period. Unemployment Rate for Europe in September also rose by 12.2%, instead of the expected rise by just 12.0%.

The news from both the US and Europe dragged down the EUR/USD pair below the 1.3700 level over the past few hours. It is now currently trading at 1.3651, with initial resistance seen at 1.3760 followed by 1.3795. Meanwhile, initial support is at 1.3672, followed by 1.3637.

In Australia, positive economic data helped boost the aussie so far in today’s session. Its Building Permits in September rose by an impressive 14.4% in a month -- far higher than the expected growth by just 2.7%. Meanwhile, it also rose by 18.6% over the past 12 months. The Import and Export Price Indice also grew better than expected by 6.1% and 4.2%, respectively.

These news helped bring the AUD/USD pair back to the 0.9500 zone, and even reaching a two-day high of 0.9525. Although it didn’t manage to sustain the level, the pair is still trading at 0.9509 at the moment. Initial resistance for the pair is at 0.9520, followed by 0.9543. Meanwhile, initial support is at 0.9441, followed by 0.9417.

By FX Strategy Team, Published on 31st of October 2013
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