The A$ remains the weakest performer within the G10. AUD/USD has edged back to 0.6350, following another visit to the low 0.6340 region. We are still around 0.40% below closing levels from last week. AUD/NZD weakness has been noticeable, although remains more driven by A$ weakness, rather than NZD strength. We are now back to 1.1310, versus early session highs around 1.1375. AU yields are continuing to lag NZ yields today.
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A USDCAD bullish theme remains intact, however, the pair has failed to hold on to this week’s highs and this has resulted in a corrective pullback. Price has traded below the 20-day EMA and attention turns to support at 1.2960, the 50-day EMA. A break of this average would suggest scope for a deeper pullback. A resumption of gains would refocus attention on key resistance at 1.3324, the Jul 14 high and bull trigger.
A bearish theme in AUDUSD remains intact and short-term gains are considered corrective. The continuation lower, earlier this week, strengthens bearish conditions and confirmed a resumption of the bear leg that started Aug 11. Attention is on 0.6682, the Jul 14 low and a key support plus an important bear trigger. A break would confirm a resumption of the broader downtrend. Initial firm resistance to watch is at 0.6857, the 20-day EMA.
EURJPY held on to the bulk of the week’s gains into the Friday close. The recent impulsive climb reinforces current bullish conditions and maintains a positive price sequence of higher highs and higher lows. The cross has cleared resistance at 142.32, the Jul 21 high. Note that price has pierced 144.28, the Jun 28 high and a major resistance. A clear break would confirm a resumption of the broader uptrend. Initial support is seen at 142.32, the Jul 21 high.