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Currency Analyst since 2010

August 20: Asian session

EUR/USD is up by about 25 pips to $1.3355. Yesterday the single currency was capped below $1.3380. Euro is well supported ahead of the release of the manufacturing and services data on Thursday that may add to evidence of the region’s strengthening recovery from a 6-quarter contraction. Today watch German PPI at 06:00 GMT. GBP/USD is consolidating in the $1.5650 area, below yesterday’s high of $1.5673. USD/JPY is trading in the 97.40 area after testing 97.86 earlier today. USD/CHF slid to 0.9225 after it failed to rise above 0.9280 on Monday. USD/CAD rose approaching resistance at 1.0380.

AUD/USD reached $0.9233 yesterday, but then closed just above $0.9100. The pair’s currently probing this level to the downside. Minutes of the Reserve Bank of Australia’s August meeting signaled further interest-rate cuts remain a possibility. NZD/USD failed to close above the daily Ichimoku Cloud. The pair peaked to $0.8162, but then slid down and is now trading below $0.8000. New Zealand’s dollar slid after the central bank governor Graeme Wheeler said the currency was overvalued.

US dollar generally feels rather well as Treasury yields climbed to a 2-year high yesterday and as investors await FOMC meeting minutes due tomorrow for clues on when the Fed will reduce stimulus.

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