PBoC Fixes USDCNY Reference Rate At 6.7983 (Prev 6.7964)
Fed's Williams: His Own View Is To Start Adjustment Of Balance Sheet In Next Few Months
Fed's Williams: Reasonable Vie To Expect One More Rate Hike This Year
Most major pairs consolidated overnight, amid a lack of major data releases and events. USDJPY is struggling with resistance at 114.30. However, the outlook for the Yen is negative, so further gains seem likely in the near-term. The next notable resistance lies at 115, followed by 115.50.
The Euro continues to consolidate around 1.14. It has lost some momentum, but is not showing any signs of weakness yet. Key resistance is noted at 1.1450. A break above would signal a rally to at least 1.16. In the short-term, the outlook for the Euro remains positive both from a fundamental and technical perspective.
AUDUSD has recovered slightly, although resistance at 0.7630 has capped the topside so far. Should it break above it, the rally would likely extend to 0.77.
Markets should remain rather quiet today amid few important data releases. However, volatility will increase tomorrow. Especially in CAD pairs as the Bank of Canada is deciding on interest rates.