Forex Flash: AUD and JPY showing signs of weakness – OCBC Bank
FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank notes that both AUD and JPY are showing continued signs of weakness against USD.
Starting with USDJPY he comments that the pair may quietly plod higher in the near term with the next resistance expected around expected towards 91.85. He notes that net speculative CFTC JPY shorts were pared in the latest week but this did not see the USDJPY stall, with official Japanese rhetoric providing the fuel for the pairs creep higher. He writes, "We stay supported on the pair in the interim."
Looking to AUDUSD he feels that in the near term, AUD may remain a victim of cited unwinding activity in favour of the EUR with Sydney away for a long weekend overnight. He writes, "Net speculative CFTC AUD longs were increased in the latest week but this pre-dated the AUDUSD's subsequent softness in the latter part of the week. We are suspicious of the AUD's upside potential in the near term as such and a breach of 1.0400 may pave the way lower to the 1.0350 neighborhood."
Starting with USDJPY he comments that the pair may quietly plod higher in the near term with the next resistance expected around expected towards 91.85. He notes that net speculative CFTC JPY shorts were pared in the latest week but this did not see the USDJPY stall, with official Japanese rhetoric providing the fuel for the pairs creep higher. He writes, "We stay supported on the pair in the interim."
Looking to AUDUSD he feels that in the near term, AUD may remain a victim of cited unwinding activity in favour of the EUR with Sydney away for a long weekend overnight. He writes, "Net speculative CFTC AUD longs were increased in the latest week but this pre-dated the AUDUSD's subsequent softness in the latter part of the week. We are suspicious of the AUD's upside potential in the near term as such and a breach of 1.0400 may pave the way lower to the 1.0350 neighborhood."
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