Lethargy and lament, FX on a Monday morning
With little by way of news to drive markets it was left to the data prints to spark some life into the open last night. With Chinese data looking healthier once more, local bourses and the AUDUSD took a leg higher as a result. However walking in this morning it’s proving to be another one of those Mondays that Bob Geldoff and the Boomtown Rats once sang about. Lethargic and lacking of any real interest.
The data agenda leaves us with very little to ponder today while the week gears up for an unruly amount of FED speakers, which no doubt will leave the overall picture even muddier than it presently is.
I must admit lethargy prevails in general and your scribe is no exception. For what it’s worth, I think USD sales will continue to prevail and if the CFTC data shows a us anything is that there is enough spare capacity of USD longs to yet be still cleared out before year end. Despite best attempts to the contrary it looks like the EURUSD is poised to head higher and drag with it the rest of the USD complex. Over the next 24 hours I think 1.3565/80 is a legitimate target and test for the single currency, while the Cable should run into headwinds (perhaps timed with the BoE minutes release on Wednesday) into 1.6180. On the topic of Betty we can’t disregard the 1.6250 triple top seen thus far already.
The AUDUSD on the other hand looks like it’s set to head higher but a healthy retracement of recent gains seems a likely scenario headed into the monetary policy meeting minutes due for release tonight. That fall below 0.9380 (perhaps into 0.9350) can be used as decent buying opportunities as the Little Battler looks to carve out the upside range into 0.9530/80 once again.
I’m hard pressed to really give much more insight at present as there isn’t a whole lot on my own radar currently.
Suffice to say as that changes, updates shall be forthcoming.
In the meantime helmets on.