By Islam Towhidul
Dollar weakness was seen after a weak ADP Survey, a disappointing 189K jobs were created vs an expected 225k. Coupled with the Euro Markit Manufacturing PMI beating expectations allowed the EUR/USD to move up to the 1 hour dynamic area of resistance were it also met strong Fibonacci resistance.
A break of the 1.085 level would most likely see the price move to the next Fibonacci level of 1.0880. NFP is expected to fall to 247K from previous months value of 295K and an increase of unemployment gains would strengthen the bearish sentiment of NFP.
As the EUR and GBP gained strength, the Asian market saw the AUD make a new low of 0.7570, the bearish sentiment was caused by falling iron ore prices and expectations of further easing by the RBA. NZD saw losses because of price reduction of dairy but it was limited and found support at 0.740.
Whilst most of the Asian pairs found weakness the JPY has been consolidating around the 120.0 region, technically the USDJPY is bearish and further evidence of this is found by a quote from the BOJ’s governor Haruhiko Kuroda.
“BOJ sees little need for additional monetary easing in the near term”.
The JPY survey of inflation data is due for release on the 2nd of April and will show key information about the Japanese economy.