Nikkei Recovery aids USD bid bias

The Nikkei put in a solid performance in Asia on Tuesday recovering from the opening session losses of 1.3% to sustain a gain of 1.4% as European traders arrived at their desks which has subsequently seen USD/JPY hold the 100.80 support level yesterday and rise overnight onto a 102.00 handle.

The USD generally traded with a bid tone across the G10 space with the JPY leading the away as levels held in other pairs and notably the 0.9580 2012 low in the AUD holding yet again despite a bleak outlook report from Terry Mccrann in the Australian media sighting a rocky road ahead for Australia.

In other news Federal Reserve watcher Jon Hilsenrath published an article after the close on Friday that managing the market’s expectations on tapering of QE will be the central banks most difficult task.

The data today with continue with the USD theme as both the UK and US markets return from public holidays to the release of the US S&P case shiller index and the US consumer confidence survey this afternoon.

EUR/USD

Supports 1.2850-1.2825-1.2745 | Resistance 1.2970-1.3005-1.3030

USD/JPY

Supports 100.80-100.20-100.00 | Resistance 102.80-103.30-103.80

GBP/USD

Supports 1.5050-1.5015-1.5000 | Resistance 1.5125-1.5165-1.5220

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