Data out of the US including retail sales and unemployment claims missed estimates and this saw some steam come out of the greenback. AUD/USD managed to reverse some of yesterday’s losses, which were incurred in the jobs data aftermath. Poor jobs data yesterday put pressure on the local currency, but this changed through European and US trade as risk came back to life. The pair had traded down to $0.7644 and has since recovered to $0.7732.
This could all change very quickly as well with RBA Governor Glenn Stevens set to testify this morning. He will most likely be looking to talk down the currency and keep it on a downward trajectory. As a result, selling opportunities remain rife particularly in the $0.7800 region.
EUR/USD also managed to reverse higher, helped by the Greece/Ukraine optimism. The pair broke above a downtrend resistance line that’s been in place since December. This has seen it nudge through $1.1400, but the volatility is far from over, particularly given the finance ministers’ meeting reconvenes on Monday. Until we get a concrete solution, trades on the single currency will remain headline risk prone. While the downtrend is likely to be broken, there is resistance in the $1.1445 region, which is the 23.6% retracement of the December to January drop.