NZD/USD rallied almost 2% off its overnight lows and those of you who like inverted Head-and-Shoulders formations should have a close look at your hourly charts. The clean break back above .7620 has confirmed the pattern and the acceleration after the break is the icing for technical analysts. AUD/USD has been dragged higher alongside and the vertical fall of recent weeks looks to be taking a break.
EUR/USD is closing in NY on session highs, usually a bullish sign, and with the market still heavily short, buying short-term dips looks to be the favoured play. EUR/GBP is again stalling at the hedge fund selling level near .8100 and USD/JPY is holding above the important support level at 79.10.
Not much of interest on the economic calendar during Asian trade so we will again rely on the equity markets for a lead.
Good luck today.
