Top 3 Currency Market Movers – February 6th
EURAUD 1.2227 +0.30%
Fundamentals have played a big role in the recent turnaround in the EURAUD pair. Euro speculation on a Greek resolution is trumping the dour economic sentiment plaguing the Australian dollar – with both supporting a rather strong upside move in the pair. Finding support at the 1.2200 exchange rate, the pair is currently trading at 1.2236. With consolidation expected in the near term future, we anticipate further momentum to push the exchange rate to test barriers at 1.2277 – ultimately settling at 1.2300. Keep an eye out for tonight’s RBA decision in boosting these technical levels.
USDCHF 0.9184 -0.17%
With comments out of Paris making matters worse for the European Union, investors have sought some refuge in the Swiss franc. The move has allowed the franc to gain some ground on the US dollar, rising after finding support at 0.9250. Currently trading at 0.9189, the pair looks ripe for some profit taking – which could lead the USDCHF exchange rate higher. However, the momentum could be shortlived, given technical resistance at 0.9225.
AUDJPY 82.19 -0.22%
Following the EURAUD sentiment, some in the market are selling out of Australian dollar assets or pairs, leaving the AUDJPY lower ahead of the Reserve Bank of Australia decision tonight. With the spot rate already failing to overtake the 82.25 resistance figure, it seems that more declines are in the cards for the pair. Given the outlook, we anticipate a short term correction to 81.75 in the short term.