The Australian dollar against the greenback jumped slightly on improving risk sentiment but was weighed by geopolitical risk emanating from Ukraine tensions. In addition, yesterday higher than expected US CPI helped the US dollar to stay firm against its major peers as inflation is moving closer to Fed goal at 2%. The AUDUSD rising pattern in the medium term was limited technically by cap at 0.9460 and fundamentally by risk rebound and stronger data for US dollar, however we anticipate that the uptrend will resume and prices are likely to retest 0.9460.
The US dollar against the Japanese Yen jumped from recent support at 101.32 to 102.29 as greenback strengthened and is expected to continue its upside bias. Looking ahead, investors will be watching employment report for March coming from UK. The British pound against the US dollar remains close to 5 month peak at 1.6820 and stronger than projected claimant count change could push the currency pair above that cap. Investors focus will turn onwards to Euro zone CPI, US Industrial Production data and lastly on Bank of Canada rate decision which is expected to keep rates at 1.00%.
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