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Aussie opens lower ahead of RBA minutes on Tuesday

By OFX

The Australian dollar is weaker this morning when valued again the Greenback. The decline during Friday’s session was limited by news suggesting continued progress in US-China trade talks. The Greenback was also supported by data on Thursday showing U.S. gross domestic product grew at an annual 2.6 percent rate in the fourth quarter, exceeding forecasts for a 2.3 percent gain.

On the data front this week we will see the release of February TD Securities Inflation, previously at -0.1%, Building Permits, and HIA New Home Sales for January. Housing data has been in the eye of the storm, so worse-than-expected figures could add a heavy weigh on the Aussie dollar.

From a technical perspective, the AUD/USD pair is currently trading at 0.7078. We continue to expect support to hold on moves approaching 0.7050 while now any upward push will likely meet resistance around 0.7100.

The New Zealand dollar slipped on Friday, closing around the 0.6800 level on the back of a stronger U.S. dollar. During the local trading session on Friday we saw slightly weaker consumer confidence, albeit still tracking nicely around average.

With little domestic data this week, investors will be focused on the Reserve Bank of Australia's rate decision Tuesday. Another key release is Manufacturing Sales in Q4, on Thursday which came in at -0.3% in the previous quarter.

From a technical perspective, the NZD/USD pair is currently trading at 0.6796 We continue to expect support to hold on moves approaching 0.6840 while now any upward push will likely meet resistance around 0.6780.

The Pound Sterling closed the week down 0.5 percent versus the Greenback at 1.3193, its largest percentage fall in roughly three weeks. On the release front on Friday we saw February Markit Manufacturing PMI resulted at 52.0 as expected, down from the previous 52.6, its lowest in four months and weighing on the Pound.

There's no data scheduled in the UK for this Monday.

From a technical perspective, the GBP/USD pair is currently trading at 1.3203. We continue to expect support to hold on moves approaching 1.3160 while now any upward push will likely meet resistance around 1.3225.

The Greenback rose on Friday, hitting 10-week-highs against the yen, as risk appetite improved amid a more upbeat outlook on some major economies of the world and the prospect of a trade deal between China and the United States. The USD/JPY pair surged to a fresh 5-month high of 112.07, finishing the week just below the 112.00 figure.

Looking ahead this week in the United States and all starts on Tuesday with the release of Manufacturing PMI and New Home Sales. On Wednesday we will see the release of Trade Balance. On Friday we will see the release of Unemployment data.

From a technical perspective, the USD/JPY pair is currently trading at 111.91. We continue to expect support to hold on moves approaching 111.65 while now any upward push will likely meet resistance around 112.20.

The Euro is weaker this morning when valued against the Greenback slipping 0.1 percent and closing on Friday at 1.1356. Data showed on Friday that underlying inflation in the eurozone remained subdued. The EU's inflation surged as expected to 1.5% YoY, although the core reading decreased to 1.0%. The final versions of Markit Manufacturing PMI came slightly better-than-expected for the EU, although confirming the economic downturn as German's index was confirmed at 47.6.

On the release front, there is only the one scheduled released release today Producer Price Index (PPI).

From a technical perspective, the EUR/USD pair is currently trading at 1.1362. We continue to expect support to hold on moves approaching 1.1340 while now any upward push will likely meet resistance around 1.1385.

The Canadian dollar was one of the weakest of the majors on Friday after the release of the gross domestic product (GDP) which slowed to 0.1% in the fourth quarter, the slowest pace since the second quarter of 2016. Also on Friday, we saw the release of Canada Manufacturing PMI slipped to a 26-month low amid a sharp slowdown in employment growth. We also saw a 2½ percent fall in WTI oil prices.

There's no data scheduled this Monday. All eyes will be on Wednesday’s Trade Balance and Friday’s Unemployment data.

From a technical perspective, the USD/CAD pair is currently trading at 1.3303. We continue to expect support to hold on moves approaching 1.3235 while now any upward push will likely meet resistance around 1.3340.