The Asian session saw the Euro trading around the 1.4350 levels, oscillating some +/-25 pips as it continued on from an edging off in the US session from the 3 week low experienced yesterday which saw the single currency drop to 1.4253. The recent rise off the low is expected to be short lived as the European debt woes have once again began to loom and see the Euro as the Euro zone tries to give a helping hand to its heavily indebted economies. Greece’s Standard and Poor’s rating was further dragged down from a junk bond status of B to BB- as Moody’s threatens to cut the country’s ratings in the near future. Greece has been on the spotlight his last week after speculation grew as to whether Greece may abandon the Euro and go back to the Greek Drachma. The EURUSD pair is currently trading at 1.4335, with strong resistance seen at 1.4270, the 55 day moving average, a level that if broken may see the single currency test the March 18th low of 1.4156.
The British pound traded steadily in today’s Forex session around 1.6400 with limited volatility. The GBPUSD pair has taken a pause from a recovery made late in yesterday’s US session after having dropped to a 3 week low of 1.6269. The better than expected RICS House Price Balance that came out at -21% from an expected -22% gave the Sterling a slight boost earlier in the session, but did not move the pair any significant amount. Much like the Euro, the Sterling had been supported at its 55-day moving average in yesterday’s drop, a support level which currently stands around 1.6290.
The USDJPY pair traded very steadily at the 80.28 levels, deviating little more than 10 pips throughout the most of the session, as the pair takes a pause from its recent drop which saw the Japanese Yen appreciate and push the USDJPY below 80.20. The latter part of the session saw the pair temporarily rise to a high of 80.42 before closing around 80.40.
The Australian dollar opened up at 1.0786 as the early part of the session saw the Aussie on a continual decline, dropping some 50+ pips to a low of 1.0746, before better than expected trade data, showing a surplus of AUD 1.74 Billion helped spur the AUDUSD pair some 20 pips. The move was temporary as soon after the Aussie continued in its decline. The current level of the Aussie sees it trading half way between the May 2nd to May 5th drop.
Gold sustained its value above the $1500 per ounce, following on from yesterday’s spur which saw the safe haven commodity rise by over $22 and move back above its 20 day moving average. Resistance for the precious metal is seen around $1520, a level that also denoted the half way point of the May 2nd to May 5th drop which saw the commodity depreciate by over $100 in just 3 days.