AUD/USD downside limited - Westpac

FXStreet (Bali) - Westpac Strategists think that both the US Dollar Treasury yields reaction to the NFP outcome last Friday will limit downside on AUD/USD for the time being.

Key Quotes

"Strong support should lie around 0.9200/20 on the week, with chartists looking for 0.9330/40. We remain neutral AUD/USD on the week though, with the pair likely to be capped by Australia’s own March employment data, where we look for a well below consensus -20k headline."

"Short-covering has been largely exhausted, at least judging by IMM data. In the background, commodities are roughly stable. AUD should however find underlying support vs the likes of EUR, NZD and JPY."

Session Recap: EUR/USD refuses to fall; USD/JPY lower for second day

After three days of declines the Euro said enough against the US Dollar as investors digested ECB speakers’ speeches. The EUR/USD rose on Monday to test the 1.3750 area and to close around 1.3740.
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AUD/NZD retreats further below 1.0800

The AUD/NZD started the week with a decline and finished around 1.0770, 35 pips lower.
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