Asia absorbed the Chinese weekend data and has traded in narrow ranges.
Of note:
- the aussie dollar has held it’s ground and no signs yet of the market seriously testing the downside as suggested by some weekend commentators
- the usd seems to be establishing a firm base across the board although the euro may surprise which will strengthen crosses
- with a firm usd underpinning, the EURCHF has established a firm base at 1.2350 and looks set for a further gradual appreciation – expect short-term stops below 50 but it’s a clear buy on dips
- USDJPY, what can I say ? it has taken out key barriers in seconds after NFPs and will be bought on dips to former major resistance/ now support at 95.00 – if indeed we get anywhere near that level which would surprise; clear target is 100.00
