Archived IMT (2008.10.07)

USDJPY, AUDJPY and GBPUSD show similar trend line resistance in their 2-hour charts. All 3 pairs rallied late in the US session as US equities bounced off their lows of the day. But the trend line resistance in continues to hold in each of these pairs; USDJPY (102.50), AUDJPY (0.7580) and GBPUSD (1.75). Renewed deterioration in Asia to trigger fresh losses in the pairs. AUDUSD and AUDJPY were the major losers of the day as markets have fuelled expectations of a 50-bp rate cut in this evening's RBA interest rate decision--11.30 pm EST (3.30 am GMT). Sharp equity losses may ensue in event of a 25-bp cut.