FX market consolidates ahead of Bernanke tomorrow
No great surprise to see some profit taking by USD longs ahead of tomorrow’s appearance by Mr Bernanke in front of a US Congress committee. It seems that the word ‘tapering’ has taken over as the buzz-word of the moment and all ears will be primed for any mention of it by the Fed Chairman.
AUD/USD seems to have found an interim base ahead of .9700 but .9870 should prove difficult to overcome on any rallies, EUR/USD should remain range-bound between 1.2750/1.2950 over the next few sessions and USD/JPY continues to look quite soft and seems to be the pair most likely to see a prolonged USD sell-off.
Pretty safe to say that it will be quiet today. The only event of note on the economic calendar is the release of the minutes from the last RBA meeting, which might be interesting.