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FOREX: EUR Weaker Post PMIs, Volatile Yen Swings Persist

FOREX
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  • The Euro remains lower on the session following a weaker set of flash PMI data for the Eurozone. In particular, the resilience for major equity benchmarks has weighed substantially on the likes of EURAUD, EURNZD and EURCAD, all falling around 0.85% on Monday.
  • EURUSD is also lower but was unable to garner any momentum below the 1.1100 handle as the early greenback optimism lost steam. The pair currently resides around 1.1125 as we approach the APAC crossover.
  • EURJPY is also 0.7% lower on Monday, however, the ongoing volatile swings for the Japanese yen persist, creating some tricky price action for EURJPY bears to navigate. The early weakness saw a print as low as 159.05, however, the two-way action for US yields saw a punchy recovery to 160.53 before then reverting lower once more. Moving average studies are in a bear-mode position and this continues to highlight a dominant downtrend. An extension lower would refocus attention on the key support at 154.42, the Aug 5 low.
  • It's been a similar story for USDJPY, where a cluster of highs appear to be forming between 144.35/50, which will remain the short-term technical point of note.
  • Today’s AUD outperformance is notable as we approach the overnight RBA decision and Wednesday’s CPI data. Key resistance at 0.6824, the Aug 29 high, has been breached. A clear break of this hurdle would confirm a resumption of the bull cycle that started Aug 5 and pave the way for a climb towards 0.6900, the Jun 16 ‘23 high. First support is 0.6726, the 20-day EMA.
  • There may also be comments from BOJ’s Ueda on Tuesday, before US consumer confidence headlines the data calendar.
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  • The Euro remains lower on the session following a weaker set of flash PMI data for the Eurozone. In particular, the resilience for major equity benchmarks has weighed substantially on the likes of EURAUD, EURNZD and EURCAD, all falling around 0.85% on Monday.
  • EURUSD is also lower but was unable to garner any momentum below the 1.1100 handle as the early greenback optimism lost steam. The pair currently resides around 1.1125 as we approach the APAC crossover.
  • EURJPY is also 0.7% lower on Monday, however, the ongoing volatile swings for the Japanese yen persist, creating some tricky price action for EURJPY bears to navigate. The early weakness saw a print as low as 159.05, however, the two-way action for US yields saw a punchy recovery to 160.53 before then reverting lower once more. Moving average studies are in a bear-mode position and this continues to highlight a dominant downtrend. An extension lower would refocus attention on the key support at 154.42, the Aug 5 low.
  • It's been a similar story for USDJPY, where a cluster of highs appear to be forming between 144.35/50, which will remain the short-term technical point of note.
  • Today’s AUD outperformance is notable as we approach the overnight RBA decision and Wednesday’s CPI data. Key resistance at 0.6824, the Aug 29 high, has been breached. A clear break of this hurdle would confirm a resumption of the bull cycle that started Aug 5 and pave the way for a climb towards 0.6900, the Jun 16 ‘23 high. First support is 0.6726, the 20-day EMA.
  • There may also be comments from BOJ’s Ueda on Tuesday, before US consumer confidence headlines the data calendar.