Consolidation has been the main characteristic of markets in the yesterday’s session, with the greenback attempting to gain some ground against its peers and partly succeeding. The USD Index rose from support at 83.48 to cap at 83.97 but then retraced back and currently is at 83.77. The EURUSD inched below support at 1.2909 but then quickly returned above that level, providing a false signal. European equity indices closed in positive ground yesterday with DAX 30 advancing by 0.94% and the CAC 40 closing higher by 0.97%.
The USDJPY weighed by NIKKEI 225 consecutive losses until Monday, falling to 100.82 and recovered today as NIKKEI turned into green light advancing by 1.2%. In addition Corporate Services Price Index was less than expected at minus 0.4% in April compared to minus 0.2% in March, weakening the Japanese Yen with the USDJPY jumping back to 102.16.
The Aussie found a strong support at 1-year low and fought back the greenback, managing to recover up to 0.9653 at the time being. Even though deceleration of Chinese economy is increasing concerns that major commodity exports for Australia will reduce and that is weighing on the pair, on the other side of the flip coin are technical factors. Technicals are driving the pair into recovery mood since medium and long term
indicators dropped to extreme down levels and need to retrace.
Concerning economic releases, today is going to be another soft news day, although UK and USA are back from holiday, biggest events are the S&Ps Case-Shiller HPI and the Consumer Confidence for US economy just before US equities open for the week.
