Major currencies update: Three days of continuous declines from global equities has continued to pressure the USD/JPY, although with the Nikkei beginning to rebound, the pair has paused its bout of selling, climbing mildly in today’s Asian session of trading to 120.50, from Tuesday’s low 119.20. Immediate resistance for the remainder of this trading week remains at 121.70. The euro declined in Wednesday’s trading from a high of 1.1320, to a current spot price of 1.1220, largely unchanged from last Friday’s trading. The pair continues to be range-bound between 1.1330 on the top-side, and with 1.1150 as support, as market participants await further guidance regarding ECB monetary policy later today. In the case of the pound, the pair has closed for its second trading day below the 1.5330 low established in July, with spot currently trading sub 1.5300. Key levels for support are seen at 1.5200, and at the broken 1.5330 low as resistance.
Commodity currencies update: The AUD/USD sold off in today’s Asian session of trading in response to a lower than expected retail sales figure, spiking 40 pips lower to a low of 0.7000. The pair has since retraced half of the move to a current spot price of 0.7015. 0.6980 is a nearby intraday support level to keep an eye on, along with 0.7050 as resistance. The Kiwi on the other hand, has attempted upside gains in New York trading yesterday, although met sellers at 0.6370, keeping the pair rangebound between the price, and a lower-bound of 0.6320.
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