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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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AUD crumbles ahead of confidence data

Article By: ,  Financial Analyst
July 30, 2013 10:14 AM

AUD has taken centre stage in the FX space overnight, falling 135 points during the Asian session. The move lower started following the release of building approvals data that showed a decline of 6.9% versus an expected rise of 2% -dragging the year on year number down 13% against the consensus forecast of flat.

RBA governor Glenn Stevens then made a speech that now has the futures market pricing in an 89% chance of a 25 basis point cut from the Australian central bank next week. Mr Stevens said the recent fall in AUD makes sense from a macroeconomic prospective and that he would not be surprised if it fell further over time whilst also suggesting that Q2 inflation data gives room for lower interest rates.

USD/JPY held the technical support at 97.50 suggested in yesterday’s report and with the Nikkei rallying, we have seen USD/JPY reclaim the 98.00 handle as data from Japan overnight saw the unemployment rate drop from 4.1% to 3.9%, with industrial disappointment coming in at -3.3% for June following a rise of 1.9% in May.

Today’s data is all about confidence sentiment surveys from Europe at 10am and the US at 3pm.


EUR/USD

Supports 1.3245-1.3220-1.3160 | Resistance 1.3300-1.3340-1.3380


USD/JPY

Supports 97.85-97.50-96.90 | Resistance 98.50-98.80-99.15


GBP/USD

Supports 1.5320-1.5275-1.5210 | Resistance 1.5350-1.5390-1.5415

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