A quiet start this morning as traders try and gather their thoughts after a whippy overnight session leaves us in consolidation territory.
As we thought yesterday, AUD looked weak and a break of 9180 saw low 9130, only to swing back up in a nasty short squeeze to 9220. Look for further consolidation of that range 9120 support 9220-30 resistance. There are immediate buyers this morning at 9150.
EUR saw the same kind of action overnight opening pretty much at the same level as yesterday. Only a break of 1.4880 will see it lower, until then players are happy to take it higher and test the Sovereign names above 1.5020.
USDJPY saw 88.30 before bouncing back above 88.50. It still looks weak and seems like it’s only a matter of time before we see sub 88.00. Buyers ahead of 88.00 should keep it afloat but if there is selling to be done into the Tokyo fix then traders will gun for stops below 88.00.
We wait to see if flows heading into the fix can give us direction.
