AUD/USD firmer, flirting with 0.7100

The Aussie dollar has found some bids around 0.7060 in early trade, sending AUD/USD to challenge highs near 0.7100 the figure.

AUD/USD capped by 0.7250

The pair is reclaiming some ground lost after the recent rejection from 4-week peaks near 0.7250 (February 4), although it continues to meander within a tight range amidst a vacuum of data releases and the festivities in China.

Chinese data released over the weekend showed FX Reserves at CNY 3.23 trillion, the lowest level since 2012. Data wise in Oz, HIA’s New Home Sales and NAB’s Business Confidence/Conditions are due tomorrow.

AUD/USD key levels

As of writing the pair is up 0.33% at 0.7096 facing the next hurdle at 0.7246 (high Feb.4) followed by 0.7325 (200-day sma) and then 0.7388 (monthly high Dec.4). On the flip side, a breach of 0.7021 (20-day sma) would expose 0.6999 (low Feb.3) and finally 0.6916 (low Jan.26).

Feb 8, 2016

FX option expiry's for today NY cut

FX option expiry's for today New York cut at 10:00 ET, via DTCC, can be found below.

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Feb 8, 2016

China’s forign reserves hit the lowest level in almost three years in Jan

The People’s Bank of China yesterday reported that China’s foreign reserves fell to the lowest level in more than three years in January. The foreign reserves plunged by $99.5 billion in January to $3.23 trillion after plunging by a record $107.9 billion in December. The decline continues largely due to the central bank’s intervention in the foreign exchange market to determine the yuan. The PBoC’s attempt to set the guide the yuan lower had caused the currency to hit five year low in January, leaving investors unsure about the health of the Chinese economy and leading them to move capital out of China and park it at overseas market.Agreed, China’s foreign reserves is the largest in the world. However, if the central bank has to draw its reserves to constantly support the falling yuan, the reserves might soon get depleted.

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