INTERNATIONAL CURRENCY BUZZ :
- FOREX – Euro holds modest gains after euro zone inflation data
- FOREX – Dollar lower against euro, yen amid fresh weakness in equities
- FOREX – Aussie slips lower against greenback
.The Australian dollar was almost unchanged against its U.S. counterpart on Tuesday, after the Reserve Bank of Australia left interest rates unchanged and the release of upbeat Australian data.AUD/USD hit 0.7154 during late Asian trade, the session high; the pair subsequently consolidated at 0.7115. The pair was likely to find support at 0.7067, the low of August 26 and resistance at 0.7174, Monday’s high. In a widely expected move, the RBA held its benchmark interest rate at a record-low 2.00% on Tuesday. Commenting on the decision, RBA Governor Glenn Stevens said the now four-month long pause on rates was “appropriate” given the moderately growing Australian economy. Separately, the Australian Bureau of Statistics reported that building approvals increased by 4.2% in July, beating expectations for a 2.5% rise. Building approvals declined by 5.2% in June, whose figure was revised from a previously estimated drop of 8.2%.
New Zealand dollar was higher against its U.S. counterpart on Tuesday, but gains were expected to remain limited as investors turned their attention to the Federal Reserve’s policy meeting this month amid heightened expectations for a rate hike. NZD/USD hit 0.6390 during late Asian trade, the session high; the pair subsequently consolidated at 0.6371, up 0.50%.The pair was likely to find support at 0.6316, Monday’s low and resistance at 0.6481, Monday’s high. The greenback had found support after Fed Vice Chairman Stanley Fischer said Friday it was still too early to decide whether to raise interest rates from near zero at the bank’s September meeting. Market participants were looking ahead to the release of U.S. manufacturing data due later in the day, for further indications on the strength of the economy and the possibility of a rate hike this month.
- BUY GBP/USD ABOVE 1.5340 TARGET 1.5360 1.5390 SL 1.5310
- SELL GBP/USD BELOW 1.5290 TARGET 1.5270 1.5240 SL 1.5320