Intraday Market Thoughts

Archived IMT (2010.07.28)

by Ashraf Laidi
Jul 28, 2010 8:08

AUSSIE may be firming up against USD and JPY but is sharply lower against European currencies after softer than expected Aussie Q2 CPI (0.6% q/q vs exp 0.9% and 3.1% on y/y basis), which is boosting EURAUD as warned in prior IMT; Improved stochastics and appearance of double bottom is calling for 1.4620 and 1.4710 in focus by weeks end. The pair could especially be boosted by any downturn in risk appetite as higher yielders usually do. The fact that AUDUSD failed to break 0.9070 3-month trend line is also key. But even if we do see a retest of 0.9070, the very dynamics pushing AUD higher would likely boost EUR. BANK OF ENGLAND PARLIAMENTARY TESTIMONY will be key for GBP as hawkish Andrew Sentence makes his case for higher rates, likely to contest Kings dovish stance; :845 am GMT (9:45 BST)


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