The US dollar's resurgence in today's early morning hours has
led to a number of significant support levels on USD crosses being
tested. The EUR/USD pair has dipped towards the 1.2790 support
line, while the GBP/USD hit 1.5350 and seems to be holding steady
at that mark. With today's news focusing primarily on Australia and
Japan, we should see thin trading conditions continue while USD
crosses shift in response to this morning's movements.
Today's leading events
04:30 GMT: AUD - Cash Rate
Taking place during the early morning hours before most of
Europe awakens means that this announcement will likely see a
latent result on the value of the AUD throughout the day's trading
and investors shouldn't rule out the fluctuations in the Aussie
follow this figure's release.
The Cash Rate is the Reserve Bank of Australia's (
) official short-term interest rate and therefore is one of the
most important figures released regarding the direct value of a
currency. The importance of interest rates in currency valuation
makes today's announcement vital to the future movement of the AUD
over the next few weeks.
Tentative: BOJ - Press Conference
The Bank of Japan's (BOJ) post-interest rate press conference is
one of the most significant events for the Japanese yen. With all
of the speculation surrounding possible bank intervention against
the continuously rising JPY, this announcement will likely shed
further light on the situation of the yen and give traders a better
idea on how likely, or how close, Japan's central bank is on
attacking what they view as the over-strengthened JPY.
Hawkish statements could lead to a strong depreciation of the
yen as this will likely signal future steps at weakening the
currency to help boost Japanese exports.