AUD/JPY Holds Support Ahead of RBA- GBP/USD Carving Higher-High?

Talking Points:

- USDOLLAR Carving Lower-Low Going Into End of Month/Quarter

- Bullish GBP/USD Outlook Remains Favorable for July

- AUD/JPY Holds Near-Term Support; Will RBA Toughen Verbal Intervention?

USDOLLAR(Ticker: USDollar):

• 
  Dow Jones-FXCM U.S. Dollar Index continues to carve lower highs & lows as it slips to 10,382.
  


• 
  RSI retains bearish momentum; break below 40 continues to favor downside targets.
  


• 
  Despite the positive data prints, focus remains on Non-Farm Payrolls (+210K) as Fed retains dovish tone for monetary policy.
  


• 
  May (10,370) & October (10,354) remain in focus as USDOLLAR fails to hold 10,406 (1.618% Fibonacci expansion).
  

GBP/USD:

• 
  Rallies to fresh monthly high of 1.7112 despite slowdown in U.K. Mortgage Approvals (61.7K).
  


• 
  Will continue to look for a series of higher highs & lows in July as Bank of England (BoE) continues to show greater willingness to normalize monetary policy sooner rather than later.
  


• 
  Next key level of interest comes in at 1.7110-20 (78.6% Fib expansion from March advance).
  

AUD/JPY

• 
  Bounces back from near-term support (95.10-20) ahead of the Reserve Bank of Australia’s (RBA) policy meeting.
  


• 
  Remains capped by 96.00 following the string of failed attempts to close above the key figure; bearish RSI momentum remains in play.
  


• 
  RBA is widely expected to keep the benchmark interest rate at 2.50%; focus turns to verbal intervention.
  

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Read More:

Price & Time: Watching the Greenback Closely

Top Tier Economic Data: RBA, ECB and U.S. Non-Farm Payrolls

USDOLLAR Daily

Chart – Created Using FXCM Marketscope 2.0

• 
  Interim Resistance: 10,602 (38.2 retracement) to 10,615 (78.6 expansion)
  


• 
  Interim Support: 10,354 to 10,375 (50.0 retracement)
  

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— Written by David Song, Currency Analyst

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AUD/JPY Holds Support Ahead of RBA- GBP/USD Carving Higher-High?