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USDCAD TECHS

Consolidation Mode But Remains Bearish

AUDUSD TECHS

Fails To Hold Onto Thursday’s High

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FOREX
  • Lower than expected headline CPI figures worked against the greenback at the outset with the dollar index shedding roughly 30 pips.
  • Consistent pressure on equity indices following the data has kept risk-tied currencies under pressure and safe haven fx firmly bid with the Japanese Yen and Swiss Franc notable beneficiaries.
  • With risk sentiment weighing, AUDJPY was the worst performing currency pair, down a little over 1% for Tuesday. Despite yesterday's minor uptick, this will be the sixth losing session in the past 7 trading days for the pair, giving up the majority of September's gains.
  • USDJPY is currently testing the first support band of 109.59/41 Low Aug 31 and Sep 3 / Low Aug 24.
  • Technically, a bearish risk is still present and key support lies at 108.72, Aug 4 low where a break would strengthen a bearish case and open 108.47, a Fibonacci retracement.
  • Elsewhere EURUSD printed a fresh high for the week at 1.1846, however, the single currency has gradually reversed, turning negative as we approach Tuesday's close of play.
  • GBPUSD also had a sharp turnaround off the highs at 1.3913 to trade a full big figure lower and hover above Monday's worst levels at 1.38.
  • Chinese retail sales are due overnight before markets will turn to UK and Canadian CPI data on Wednesday.
  • US Empire State Manufacturing Index and Industrial production will headline the US docket.
MNI London Bureau | +44 020 3983 7893 | jack.lewis@marketnews.com
MNI London Bureau | +44 020 3983 7893 | jack.lewis@marketnews.com
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