Currency markets finished last week’s trading largely, by continuing a pullback from the large risk-aversion moves, of which many market watchers linked to concerns regarding China. The EUR/USD has closed on Friday to the downside at 1.1168, after an attempted challenge of bids at 1.1150. Early Asian trading today has since seen the bearish advance pause temporarily as the pair mildly climbs 70 pips to a current spot price of 1.1237. The current range established in the pair has resistance set at 1.13000. With Asian indices starting the week lower, the USD/JPY is dragged down in tandem, currently trading at 121.00, from an opening price 121.62. On a larger technical perspective, the pair is currently trading at a key support/resistance zone between 121.30-121.00, which can be seen on the daily timeframe. Cable is trading in a similar fashion so far in today’s Asian session to the Euro, trading 20 pips higher from its daily open at 1.5410, testing immediate resistance at 1.5425.
Commodity Currencies update: Asian trading has seen minimal flows in the AUDUSD currency pair, as markets most likely await for Tuesday’s RBA rate announcement, to decipher further clues to the central bank’s stance to the recent Chinese-driven market turmoil, and potential impacts to Australia. Spot currently trades at 0.7141. On the other hand, the NZD/USD is seeing early selling with spot at 0.6420 currently, 50 pips down from the open, with the pair capped at 0.6500 towards last week’s close.