ANALYSIS

RBA minutes come in as expected ahead of German ZEW data

The FX markets continue to languish in tight ranges as the dollar trades with a slightly negative bias. The PBOC’s Zhou is suggesting that the Chinese central bank is prepared to expend the yuan’s daily trading ban as part of its domestic reform plans.

The RBA minutes revealed that the Central Bank is still uncomfortable with the level of AUD as they reiterated their easing bias: ‘the ‘RBA saw it prudent to hold rates, not close off chance of cut.’ AUD initially dipped on the headline but with the market sitting short and positive comments on reform from China the lifestyle is trading at session highs.

The FX markets are taking their direction form the risk environment so I’ll be watching this afternoon how the Dow Jones trades on the 16,000 level, with rejection of the 1800 level seen in the S&P yesterday.

Data focus today will be from Europe, with the release German ZEW economic sentiment survey at 10am.

EUR/USD

Supports 1.3470-1.3425-1.3370 | Resistance 1.3555-1.3580-1.3630



USD/JPY

Supports 99.50-99.10-98.80 | Resistance 100.45-100.60-101.55



GBP/USD

Supports 1.6050-1.5980-1.5945 | Resistance 1.6145-1.6175-1.6205