Forex Todays

USD, EUR other majors holding near late NY levels with main cue likely to come from how region's bourses fare given Wall Street's fall, slight renewal in risk aversion on banking sector; USD/JPY around 104.46 vs 104.55 late in NY, EUR/USD 1.5541 vs 1.5539. Data include Japan monetary base 2350 GMT, Aussie 1Q BoPs, April building approvals 0130 GMT, Malaysia trade 0401 GMT, Singapore PMI 1330 GMT. RBA decision around 0430 GMT. Europe has EU 1Q GDP, April PPI, Trichet speech while in U.S. there's factory orders, Bernanke, McCormick speeches

USD emerging from overnight session bruised and weakened after the emergence of renewed fears surrounding the U.S. banking system. John Kyriakopoulos, head of FX strategy at nabCapital, remains generally upbeat, saying the broader trend in currency is for higher levels of risk taking, albeit with periods of setbacks. USD had strong gains last week and there is some risk that this week will see some of those longs pared back. Says USD/JPY pullbacks below 103.00 would represent solid value. USD/JPY now 104.53.

AUD/USD firm after holding up overnight following a test of key support at 0.9500. Tony Morriss, currency strategist at ANZ, says pair looking good despite rising risk indicators, especially in U.S. and U.K. in last week. Weak USD helping to buoy pair. Expects stop-loss orders to be triggered on a break of 0.9580. But AUD/USD may be buffeted first by a widening in Australia's current account deficit in 1Q; consensus points to deficit of A$20.4 billion vs A$19.4 billion in 4Q. Data due at 0130. RBA board meeting may also restrain AUD/USD gains if it says there are more signs of a slowdown in the economy. AUD/USD now 0.9554


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