AUD/USD falling after US CPI

After being capped just beneath 1.0800 during early Asian session the AUD/USD declined, with an European bounce in the middle.

Stronger than expected US CPI data didn’t have the same effect of yesterday’s risk-on rally on blooming economic data. “The culprit is EUR/AUD which has been absolutely loaded with speculative shorts since the break of 1.29. They are getting squeezed at the moment”, says Adam Button, analyst at Forexlive.com.

According to Mataf.net analysts, resistances are at 1.0800, 1.0845 and 1.0895. On the downside, supports might act at 1.0745, 1.0655 and 1.0625. At the moment of writing, the AUD/USD keeps losing value, now at 1.0725.

USD/CAD falls below 0.9950 after Canadian CPI

By fxstreet.com

The Loonie extended gains against the Greenback, after higher-than-expected domestic consumer price index data helped to lower prospects the BoC might cut interest rates.

USD/CAD dropped nearly 20 pips after the data, sliding through the 0.9950 support and printing a fresh 2-day low of 0.9940. At time of writing, USD/CAD is trading at the 0.9945 zone, recording a 0.2% loss on Friday.

As for technical levels, immediate supports for USD/CAD could be found at 0.9925 and 0.9900, while resistances might be faced at 0.9970, 1.0000/10 and 1.0040.

Canada’s consumer price index grew 0.4% in January and 2.5% YoY, surpassing the 2.3% that was expected. Core CPI climbed 0.2% in the same month and 2.1% over the year, exceeding the 1.9% forecast.

EUR/USD rises on Fed’s Bernanke speech

 Ben Bernanke’s speech at a community baking conference has raised the EUR/USD price to test the 20-hour MA resistance, at 1.3030.

In the speech, besides showing frustration on the slow US recovery, Bernanke is confident that low rates and stricter regulations will ultimately increase loan demand and bank profitability.

“The hourly chart shows price near its daily low, trading below a still bearish 20 SMA while indicators turned flat in oversold levels, with no signs of a stronger corrective movement at sigh, unless a recovery above mentioned 1.3030 area”, says FXstreet.com analyst Ivan Delgado, adding resistances at 1.3065 and 1.3100. Supports might be found at 1.2970, 1.2930 and 1.2890.