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22 Apr 2015
Aussie jumps on upbeat CPI, BOE minutes– Next key event
FXStreet (Mumbai) - The Australian dollar emerged a clear winner in Asia, riding higher on the back of slightly stronger than forecast CPI print which may reduce the likelihood of the Reserve Bank of Australia (RBA) cutting interest rates at its May policy meeting.
While the NZD/USD continued to consolidate in a 30-pips narrow range following a highly volatile previous session, largely supported by solid gains seen in its OZ counterpart.
The USD/JPY pair continues to trade in a flat-lining in Asia as the Japanese currency remained unperturbed by impressive Japanese trade numbers which showed a surplus for the first time in four years last month. Meanwhile, the US dollar trades muted across the board consolidating previous losses.
Key headlines in Asia
Australian inflation surprises to the upside in Q1 2015
AUD/USD: Spiking on inline CPI data
Japan's trade balance: Beats expectations on imports drop
USD/JPY kicking off with volatility in tight range
Heading into Europe
Markets are headed for yet another calmer European session today, with limited significant economic data on cards while Bank of England (BOE) April meeting minutes will be closely watched.
Today's MPC minutes are expected to show all of the nine-strong rate-setting committee at BOE voted to keep policy unchanged in April. BOE minutes will be published at 8.30GMT.
The BoE made the case for a rate hike even more distant in March, when it revised down its outlook for medium-term inflation. In its March MPC minutes, the policymakers judged that deflationary forces might become more persistent, driven by the risk that divergent monetary policy trends, as well as stronger prospects for growth in the UK than in the euro area.
The BoE policymakers will report on their updated outlook for inflation, economic growth, and the labour market on May 13, as part of the regular quarterly Inflation Report.
Later in the North American session, we have Existing Home sales data from the US to be reported at 14GMT. US existing home sales numbers are expected to show a rise of 5.04M in the reported month versus the less than forecasts rise of 4.88M in the previous month.
EUR/USD Technicals
Valeria Bednarik, chief analyst at FXStreet explains, "Technically, the 1 hour chart shows that the price is retreating from the 50% retracement of its latest bearish run, as the price hovers around a mild bullish 100 SMA.”
"In the same chart, the 20 SMA offers support around 1.0715, converging with the 38.2% retracement of the same rally, while the technical indicators turned lower in positive territory towards their mid-lines."
"In the 4 hours chart the previous candle presents a long upward wick, which reflects sellers are still willing to intervene on spike higher, whilst the technical indicators stand directionless below their mid-lines, maintaining the upside limited."
While the NZD/USD continued to consolidate in a 30-pips narrow range following a highly volatile previous session, largely supported by solid gains seen in its OZ counterpart.
The USD/JPY pair continues to trade in a flat-lining in Asia as the Japanese currency remained unperturbed by impressive Japanese trade numbers which showed a surplus for the first time in four years last month. Meanwhile, the US dollar trades muted across the board consolidating previous losses.
Key headlines in Asia
Australian inflation surprises to the upside in Q1 2015
AUD/USD: Spiking on inline CPI data
Japan's trade balance: Beats expectations on imports drop
USD/JPY kicking off with volatility in tight range
Heading into Europe
Markets are headed for yet another calmer European session today, with limited significant economic data on cards while Bank of England (BOE) April meeting minutes will be closely watched.
Today's MPC minutes are expected to show all of the nine-strong rate-setting committee at BOE voted to keep policy unchanged in April. BOE minutes will be published at 8.30GMT.
The BoE made the case for a rate hike even more distant in March, when it revised down its outlook for medium-term inflation. In its March MPC minutes, the policymakers judged that deflationary forces might become more persistent, driven by the risk that divergent monetary policy trends, as well as stronger prospects for growth in the UK than in the euro area.
The BoE policymakers will report on their updated outlook for inflation, economic growth, and the labour market on May 13, as part of the regular quarterly Inflation Report.
Later in the North American session, we have Existing Home sales data from the US to be reported at 14GMT. US existing home sales numbers are expected to show a rise of 5.04M in the reported month versus the less than forecasts rise of 4.88M in the previous month.
EUR/USD Technicals
Valeria Bednarik, chief analyst at FXStreet explains, "Technically, the 1 hour chart shows that the price is retreating from the 50% retracement of its latest bearish run, as the price hovers around a mild bullish 100 SMA.”
"In the same chart, the 20 SMA offers support around 1.0715, converging with the 38.2% retracement of the same rally, while the technical indicators turned lower in positive territory towards their mid-lines."
"In the 4 hours chart the previous candle presents a long upward wick, which reflects sellers are still willing to intervene on spike higher, whilst the technical indicators stand directionless below their mid-lines, maintaining the upside limited."