RBA keeps interest rates unchanged
|The U.S. dollar was seen strengthening yesterday. Data from the U.S. showed that the ISM nonmanufacturing PMI rose to 59.9 beating estimates of 56.5. January's PMI data was also stronger than December's print of 55.9.
In the UK, the services PMI came out slightly better than expected. The services sector activity rose to 54.7 in January, beating forecasts of 53.6 and accelerating slightly from December's 53.9.
Earlier today, Australia's retail sales figures showed a 0.5% decline on the month. This was a bigger than expected decline of 0.2%. However, revisions to previous month's data showed an increase of 1.3%. The RBA's monetary policy meeting was also held earlier today. The central bank kept interest rates unchanged at 1.50%.
Looking ahead, New Zealand's unemployment data will be released later this evening. Estimates point to an increase in New Zealand's unemployment rate at 4.7% while the quarterly employment change is expected to rise at a slower pace of 0.4%
EURUSD intra-day analysis
EURUSD (1.2362): The EURUSD has confirmed the failed bullish flag pattern with price action failing to breakout above the 1.2497 level. The declines yesterday pushed the euro to the previous support formed at 1.2398. A break down below this level is required for the EURUSD to confirm the downside. Initial support is seen at 1.2281 which could be tested in the near term. Following this, EURUSD could be extending the declines to the lower support level at 1.2090 - 1.2070 area of support which is pending a retest.
USDJPY intra-day analysis
USDJPY (108.60): The USDJPY currency pair posted sharp declines late yesterday as price action was seen falling back to the 108.64 level of support. This marks a retest of the previously established support level. A rebound off this level is required in order to put the bias to the upside. However, the resistance level that has held up around 110.44 - 110.34 could be seen stalling the gains once again. To the downside, if the declines extend below 108.26 then USDJPY could be seen falling to the 108.00 level eventually.
NZDUSD intra-day analysis
NZDUSD (0.7278): The NZDUSD currency pair gapped lower on the day. Intraday retracement saw prices retracing back to fill the gap but eventually price settled lower. This marks a second consecutive session of a bearish decline in price. On the 4-hour chart, with NZDUSD breaking below the 0.7333 level, we expect to see a short term consolidation at this level. If 0.7333 is retested for resistance then we can expect to see further declines for the Kiwi dollar. The NZDUSD will be seen falling towards the first support level at 0.7160. Alternately, in the event that price manages to reclaim the 0.7333 level, we could expect to see some upside momentum being built up.
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