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Australian Dollar Corrects Higher, US Dollar Consolidates in Asia

By , Currency Strategist
20 August 2012 07:00 GMT

Talking Points

  • US Dollar Consolidates in Asia, Australian Dollar Underperforms
  • French Bill Auction Highlights Bare-Bones European Calendar
  • S&P 500 Index Futures Point to Neutral Risk Sentiment Trends

The trading week began on a quiet note, with the US Dollar little-changed against its top counterparts. The Australian Dollar narrowly outperformed in what appeared to be a correction after a Treasury report released on Friday stoked intervention fears and sparked aggressive selling.

Muted conditions may carry forward into the coming hours. The European and US economic calendars offer a pittance of low-level event risk and S&P 500 stock index futures are trading flat, offering no clear guidance on the risk appetite front.

In the absence of larger catalysts, a French bill auction may prove to be the most market-moving item on the docket. Paris is scheduled to sell €7 billion in 3-, 6- and 12-month paper. Traders will look to average yield and bid-to-cover readings to gauge the degree of Eurozone sovereign stress.

Asia Session: What Happened

GMT

CCY

EVENT

ACT

EXP

PREV

22:30

NZD

Performance Services Index (JUL)

53.1

-

53.9 (R-)

23:01

GBP

Rightmove House Prices (MoM) (AUG)

-2.4%

-

-1.7%

23:01

GBP

Rightmove House Prices (YoY) (AUG)

2.0%

-

2.3%

5:00

JPY

Leading Index (JUN F)

93.2

-

92.6

5:00

JPY

Coincident Index (JUN F)

94.1

-

93.8

7:00

JPY

Convenience Store Sales (YoY) (JUL)

-3.3%

-

-2.6%

Euro Session: What to Expect

GMT

CCY

EVENT

EXP

PREV

IMPACT

9:00

EUR

Euro-Zone Construction Output s.a. (MoM) (JUN)

-

0.1%

Low

9:00

EUR

Euro-Zone Construction Output w.d.a. (YoY) (JUN)

-

-8.4%

Low

13:00

EUR

France to Sell €7bn in 3-, 6-, and 12-month Bills

-

-

Medium

Critical Levels

CCY

SUPPORT

RESISTANCE

EURUSD

1.2288

1.2428

GBPUSD

1.5668

1.5733

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @IlyaSpivak

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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
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20 August 2012 07:00 GMT