Aussie testing support at the lows….
The USD is continuing to be the mover and shaker, trading on highs against the majors with the Nikkei currently up 0.80%. Currently the AUD/USD is testing the lows around 1.0460; the 0.0% on the hourly chart. We haven’t seen trading at this level since January 20th.
This area also has signifigance from a daily perspective, with 1.0415 being the 61.8% fibo line on the move from January 9th up to the high on February 29th. If support holds here we look back towards 1.0498 as our longer-term target. Lower we have the 200 day moving average coming in at 1.0402 and the 100 day moving average at 1.0369.
RBA bulletin says bank funding costs are part of the cash rate setting.
- Lending rates have fallen more than funding costs in the past 6 months.
- Funding costs have risen relative to cash rate.
Aussie MI Inflation Expectations 2.7% vs. 2.5% prior reading.
New Zealand PMI rises to 57.7 vs. 50.8.
Barclays says the downside risk to USD/JPY is “dramatically reduced”.
EUR/USD finding short term trend line support
The pair is testing trend line support on the 15 minute chart; currently trading close to the lows. If support continues we look back towards 1.3104 as the topside target. We may see some more risk as the Nikkei trades in the positive.



