Good morning everyone! We are still focused on the Asia-Pacific currencies while economists are speculating about the reaction of the Chinese government. We hope you will enjoy it and wish you a relaxed and successful trading day.
Market review
The JPY and USD climbed against a basket of major currencies after Chinese reports showed factories and loans fueled, which added to be concerned about inflation in the region and the government will act to damp more growth. The speculation about an act from the Chinese government boosted demand for low-yielding currencies as the JPY pulled back from a twoweek low against the EUR. China’s consumer prices climbed 2.7 percent from a year earlier in February while the Industrial output gained 20.7 percent in the first two months of the year. The EUR/JPY fell from its yesterdays high at 124.00, which was its highest peak since February 23rd. The JPY gained to a high of 123.02 versus the EUR. The Japanese currency reached a dayhigh at 82.28 versus the AUD after it fell over the past four trading days. It finally pulled back from its low at 83.32, which was the lowest level since January 21st. The AUD fell against the USD as it has reached a seven-week high yesterday. The bad performance may be caused by a report that published the nation’s employers added fewer jobs than economists expected. The AUD/USD fell to a low at 0.9114 after it reached a high at 0.9193 yesterday, which was its strongest level since January 20th.
CAD/CHF
Since February 9th, the CAD/CHF has been moving inside a bullish trend channel and Fibonacci projection level. After touching the 100% projection line around 1.0511 for the second time, the market pulled down and reached the lower line of the trend channel. If the market could break out the bullish trend channel, it may fall towards the lower Fibonacci levels.
CAD/JPY
Since the beginning of February, the CAD/JPY has been trading in an N formation with a resistance point around 88.30. Yesterday, the pair has shown a small break-out through the resistance level before coming back. It depends whether the pair will show a clearly movement along the levels. If the pair will show a strong break through the resistance around 88.30, it might continue its bullish trend inside the channel.
