Yen is rising slightly against the Dollar and Gold is falling after strong US data
The Asian trading session was kind of boring, with forex participants only having to deal with lower-tiered data from Australia and China.
The service PMI from Australia has shown some improvement for the month of January, with the employment component revealed extraordinary results, In the meantime, the inflation gauge, as well as the job ads, report soared higher for the month.
Moreover, the real limelight for the session was China’s Caixin services PMI, which was released at 54.6 compared to the analysts’ 53.6 reading for January.
BOJ Governor Haruhiko Kuroda in his scheduled speech in Parliament emphasized that he and his company are being patient. He is still focused on achieving the extremely important 2% inflation target and the country remains far from the current target, so currently monetary easing should continue. His remarks put a dent in the Yen’s gains, which gained traction due to the overall risk aversion sentiment.
Asian equities follow their US counterparts, which interpreted that a strong NFP report, could mean higher bond yields and a stronger inflation in the short term.Nikkei 225 close lower by 2.55% at 22,682.08
As for commodities, U.S. West Texas Intermediate (WTI) crude declined 58 cents to $64.91 a barrel. Brent was down 61 cents, or 0.89% percent, at $67.97 a barrel.
The trading trend in the Pound today is expected to be determined by the release of UK’s Markit services PMI for January, set to release next hour.
GBPUSD is expected to find support at 1.4040, and a fall through could take it to the next support level of 1.3970. The pair is expected to find its first resistance at 1.4230, and a rise through could take it to the next resistance level of 1.4350.
EURUSD: Intraday bias in EUR/USD remains neutral at this point. As long as 1.2225 support holds, further rise is in favor.
GBPUSD: Intraday bias in GBP/USD remains neutral as consolidation from 1.4345 continues.
USDCAD: Intraday bias in USD/CAD remains on the upside at this point.
USDCHF: While downside momentum in USD/CHF is diminishing as observed, deeper decline is still expected with 0.9395 minor resistance intact.
USDJPY: USD/JPY retreats mildly today but stays above 109.25 minor support.
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