Gbp/Usd breaks above 100 and 200 hour M/A

Cable has broken above both the 100 and 200 hour M/A (1.6443 & 1.6453 respectively). Also at 1.6446 lies the 50% retracement of high a couple of days back. The 1.6440-50 level should offer good support if there is a pullback in the pair, although it seems momentum is to the upside with 1.6500 in its sights.

Gbp/Jpy above 100 hour M/A

Gbp/Jpy has broken above the 100 hour M/A (155.94). It does look like there should be some resistance nearby as a trendline of recent highs (155.33) may act as a barrier for the pair. Gbp/Jpy , if it could break above that trendline, should see a nice pop to the upside.

UK Nationwide HPI better than expected

Uk Nationwide HPi m/m came in at 1.3% , better than the 0.3% expected.

This should be a positive reading for GBP. Gbp/Usd currently trading at 1.6428.

Sterling showing some strength going into housing data

The Gbp is showing some strength vs. the Euro and Usd going into some important data at 2:00 EST. At that time Nationwide HPI will be released. A strong number might further sterlings strength as a 0.3% reading is forecasted. Currently Gbp/Usd is trading near session highs at 1.6404 and Eur/Gbp near session lows at .8568.

7-30 Economic Calendar

BOJ’s Noda on the Wire (USD/JPY)

• Timing is key for exit policy.
• Must avoid having abnormal measures last too long can hurt the recovery.
• BOJ will decide how to handle credit measures by December of ’09.
• Fiscal consolidation needed for a stable bond market.
• Cautious about downside risks.
• Price declines should moderate by the 2nd half of 2009.
• No risk of slipping into a deflationary spiral now.
• Recovery depends on overseas demand.
• Recovery in domestic demand will take some time.
• Global financial markets haven’t fully recovered.

These comments did little to move FX prices as the risk pairs trade off session highs. On the USD/JPY pair we see support at the 100hr moving average this session, with some topside resistance ahead.

AUD/USD New Resistance Following the Correction

The AUD and other commodity currencies have corrected a good bit in the last 48 hours with commodity prices moving significantly lower. Following the Building Approvals release the AUD/USD pair rallied to session highs but was unable to sustain the price action, as oil continues to trade weaker, as well as US equity futures and the Nikkei. On the chart below we see the 23.6% retracement acting like resistance with a break putting the 4-21hr mavg in play and to the downside the next good support level seems to be at the 50% level of the July move above the 80 cent handle, where the 4-100hr and 4-200hr have recently crossed.

AUD June Building Approvals

The Australian Building Approvals reading for June was released better than expected as the Aussie and the European majors have traded off session lows to session highs.  The release was as follows:

• Building Approvals (MoM) – Survey: 8.0%      Actual: 9.3%   Prior:-12.5%
• Building Approvals (YoY)  – Survey: -18.2%   Actual: -14.3%  Prior: -22.4%