Currencies are back on the bid on Tuesday, with some notable interest in the Euro, after EU Juncker was out saying that EU FinMins had agreed that new measures on Greece needed to be taken by March 16.
The measures included lowering Greece’s fiscal deficits to 4% versus GDP. The Australian Dollar has performed quite well thus far on the day, to even outpace the major currencies, despite a somewhat more balanced and cautious RBA Minutes. The impressive business confidence data and higher local equity prices have been attributed to the relative strength and have managed to easily offset any concerns over the Minutes. RBA Assistant Governor Debelle has also been propping the Aussie on Tuesday after saying that the risks for the US and European economies are to the downside, while in Asia, the risks are to the upside. Elsewhere, BOJ Shirakawa has been out saying that the central bank will act boldly should market conditions get messy. However, these comments have hardly influence Yen price action.
Looking ahead, UK CPI (0.0% expected), retail price index (0.0% expected), and DCLG house prices (1.2% expected) are due at 9:30GMT, followed by German ZEW (-53 expected) and Eurozone ZEW (41.5 expected) at 10:00GMT. All major currencies are up against the buck on the day led by Kiwi. US equity futures are trading slightly in the red, while commodities are bid, with gold continuing to outperform.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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