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Forex: AUD/JPY holding above 101.00 ahead of Aus federal budget

FXstreet.com (Barcelona) - AUD/JPY is currently trading at 101.34, off session lows at 101.20, double weekly low with late London session lows. The cross is down -0.52% for the week so far, mostly on the back of Aussie weakness as Yen has been more or less range bound in same time period. Still, the cross is higher by +13.66% year to date according to Reuters, and +22.93% in last 6 months.

Next big risk event for Aussie will be the Australian federal budget due out at 09:30 GMT. “If there are any nasty surprises in tonight’s budget then the AUD selling could pick up significantly,” says FXWW founder Sean Lee, adding: “especially with so many speculative players afraid of ‘missing out’”. According to the analyst: “AUD/JPY is consolidating in a wedge formation and these are usually consolidative in nature i.e. they break out in line with the dominant trend which in this case is bullish,” he concludes.

Immediate resistance to the upside for AUD/JPY shows at current levels as Friday's lows 101.35, followed by NY session highs at 101.81, and yesterday's weekly/Friday's highs at 102.06. To the downside, closest support lies at mentioned double weekly low 101.20, followed by Wednesday's highs at 101.01, and Wednesday's/Thursday's lows at 100.41/37.

Forex: US Dollar Index adds to gains, eyes resistance at 83.50

The US Dollar Index closed the day slightly higher, up six pips at 83.32. The DXY traded as high as 83.45 at one point but was unable to hold onto all of its gains and leaked slightly lower at the end of the day. Retail Sales data out of the US beat expectations, coming in at +0.1% actual vs. -0.3% forecast. The coming European session will be busy with the German Zew due out at at 9:00GMT.
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