Monday August 12th: Quiet start to early interbank trade
Morning all. AUD bulls are a having a better time of it over the last few sessions and the AUD/USD in particular looks to have put an interim base in place. The AUD also made decent gains against the EUR and the NZD and there is a definite topping formation in EUR/AUD (see chart) which will give more strength to the AUD bull case. I’d expect this positional adjustment on the crosses to continue for a few more sessions.
Most movement today in Asia will again be led by the AUD and the JPY. Japanese GDP and IP data might get the Yen moving but it’s more likely to be stop-loss hunting which gets the market excited. The technical downside target for USD/JPY is still 95.00 whilst AUD/JPY will run into very strong resistance near 89.00/30 (see chart).
Good luck this week.