November 3, 2015
As NY traders enter for the trading day, the strongest currency is the AUD, while the weakest is the NZD.
The RBA kept rates unchanged at 2.0%. They acknowledged that economic activity had firmed "a little over recent months", but that the "outlook for inflation may afford scope for further easing of policy". The AUDUSD rallied through trend line, the 200 hour MA and 50% retracement at the 0.7162 to 0.7178, but ran into sellers near topside trend line. The price has rotated back down to test the key 200 hour MA currently (and 50% - see chart below).
The weakest currency is the NZD. The AUDNZD was the biggest loser falling by 0.92%. The pair has been under pressure since the middle of September. The move higher has taken the price above trend line resistance (at 1.0652) and looks toward the 200 day MA at the 1.0761 area.
The ranges for the day are once again on the light side with the exception of the AUDUSD which has reached it's 22-day average (around a month of trading). The EURUSD and the GBPUSD have a 62 pip range. The USDJPY only a 30 pip range vs an average of 75 over the last 22-trading days. There is room to roam (i.e., extend the trading range). The USDJPY is trading near the high for the day.
US Factory orders will be released at 10 am with expectations of -0.9% vs -1.7% last month. Ex transportation last month came in at -0.8%.
