Traders Hold Off Ahead of Busy Week

The Aussie dollar traded sideways for much of last week, holding onto $0.93 with a tight grip as we approach a busy economic calendar this week. Capital expenditure data late last week saw the buyers step in as data indicated that the Australian economy is sufficiently transitioning from mining led investment, however gains were short lived with the Aussie economy is sufficiently transitioning from mining led investment, however gains were short lived

Data probably won't help the euro

The comments from Putin and the reports on the military developments suggest that tensions won’t ease soon. Rising chances of western sanctions could weigh further on the fragile European economy and are a negative for the euro (and for European equities) even as equity futures hold up rather well this morning.

USD/JPY is hardly affected by the Ukranian tensions

Uncertainty on Ukraine and a decent bid for the dollar overall are pushing EUR/USD lower in the 1.31 big figure, with the pair nearing the key 1.3105 support. USD/JPY is still hardly affected by the Ukrainian tensions. The pair even regained the 104 barrier.​​ ​​Overnight, Chinese manufacturing PMI’s were reported marginally weaker than expected

Expect solid reports in the run-up to payrolls

Therefore we think that also here some repositioning could occur as we expect solid reports in the run-up to payrolls (manufacturing ISM on Tuesday; ADP and non-manufacturing ISM on Thursday). Geopolitical tensions are a wildcard for this strategy

Economic Indicator News »

Gross Operating Profits in Australia fell during Q2

The Australian Bureau of Statistics reported that Company Gross Operating...

Actual

3.1%

Forecast

---

Previous

3.8%

Economic Indicator News »

Chinese manufacturing Index came in below consensus

The China Federation of Logistics and Purchasing reported that Manufacturing PMI...

Actual

9%

Forecast

9%

Previous

9.2%

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Fundamental

Data probably won't help the euro

The comments from Putin and the reports on the military developments suggest that tensions won’t ease soon. Rising chances of western sanctions could weigh further on the fragile European economy and...


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Technical

Euro maybe running out of downward momentum in the short terms

​​Technically, the Euro is under heavy pressure at the start of the week, although Monday could again see it supported above 1.3100 in the absence of any NY market. The first target is seen at 1.310...