FOREX NEWS: Australian dollar pares losses as EUR stays well-bid

by Jet Encila on December 25, 2013 1:51 pm

FOREX NEWS: Australian dollar pares losses as EUR stays well-bid

NEW YORK – The week began on a quiet trade session. The holiday in Japan kept the volumes slight in its currency complex. Asian equities generally ushered in the week in the green despite the looming liquidity worries in the Chinese market.

China’s seven-day repo rate advanced to 8.85 percent overnight while the media is under pressure to keep the mood down, according to updates by the Financial Times.

The JPY complex was trading light on Monday as the USD/JPY stayed in the tight range of 103.93/104.14. Option barriers are back in-charge at 104.85/105.00.

Considering the limited positivism in the US dollar bulls, some profit taking would nOt come as a surprise.

HotForex Choose Your Pair

The EUR/JPY pair ushered in the week just a bit upwards, but the momentum was negative calling for further downside correction. A light resistance is seen at 142.42/50 then pre-143.00.

The EUR/USD pair opened well-bid in Asia. The pair bounced back from its Friday low after the US gross domestic product surprised on the upside.
Bouncing back

The EUR/USD improved to 1.3694 earlier today as positive offers from leveraged entities are said to be in the 1.3700/10 region. Option bids are skewed on the upside and the EUR/GBP pair opened the week testing 0.83800-resistance. Pressure on selling should heighten under 0.8345.

Meanwhile, the sentiment in Cable stays mixed as buying interest is still robust above the 1.6300 zone, while option barriers cap the upside at 1.6400/50/80 then 1.6500 mark. The pair started the week moderately bullish, with a 20-pip rally. Holiday volumes are seen to keep the direction unclear.

The Australian dollar pared losses versus its G-10 counterparts on pre-holiday short-covering.

The AUD/USD pair pared partially heavy losses last week while decent resistance is expected at pre-0.9000/10, especially if liquidity worries in the Chinese market are to worsen.

The AUD/NZD remains offered at 1.0900, if cleared should call for further upside correction. With the heavy sell-off noted since 28 of October, a correction is seen to hoist the currency pair to 1.1000, then 1.1200.

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