AUD/USD extends losses, EUR/USD slips

AUD/USD underperformed among the majors, easing to a low of 0.7619 0.7665. Markets are building positions on expectation of the Reserve Bank of Australia cutting rates once again in its decision next week. The HIA New Home Sales index rose 1.1% versus a previous 1.8%. Concerns over the state of the economy and China’s slowdown – Australia’s major trading partner – and the impact on commodity prices are likely to weigh on the Aussie.

EUR/USD extended lower as concerns over Greece remained. Prime Minister Alexis Tsipras’ government put forward new reform plans for approval over the weekend as part of a bailout extension review. Greece will run out of money by the end of April if a deal is not reached and bailout funds are not released. EUR/USD slipped to 1.0784 from 1.0845. Meanwhile, ECB QE will likely keep the bias down as well.

USD/JPY extended higher to 120.37 from 119.99. Helping buoy the pair was Japan’s fiscal year-end positioning. The risk event for the yen will be the Bank of Japan Tankan index tomorrow. It is expected to be more upbeat with sentiment matching optimistic expectations of future output.

EUR/JPY rallied to 130.25 early in tandem with USD/JPY but fell back later to 129.92. The bias is down with no palpable progress on Greek debt.

EUR/GBP did little between 0.7309-20. Some banks have recommended buying the cross on uncertainties related to upcoming elections in the UK. EUR/CHF too did little between 1.0470-85 with players still wary of SNB intervention.

GBP/USD edged up to 1.4817 early before falling back to 1.4783 on broad USD strength. Upcoming UK elections look to weigh on the pound.

USD/CHF fell to 0.9655 early before bouncing to 0.9690 on broad USD strength.

NZD/USD closed in New York at 0.7504 and lower on broad USD strength. A knee-jerk push down to 0.7487 on weak housing consents data was followed by a bounce to 0.7511. Fresh pressure was seen later to a low of 0.7477. The ANZ business survey provided some support later.

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