Market Analysis – 02.04.2014

By February 4, 2014Analysis

We had a combination of big surprises in AUD and USD. The combination of poor ISM numbers from the US and official statement language from the AU made for a surprise burst upward for the AUD/USD pair.

Chart of The Day: AUD/USD D1

AU officials surprised the market by dropping statement language pertaining to the AUD being too strong so we saw a big pop in the AUD/USD pair. Add to that the poor US ISM data released on Friday and it’s apparent why it jumped. My guess is more than a few traders got taken out after going short on the pin bar off W1 resistance (I did).

audusd-d1-02042014

GBP/USD D1 Chart:

Cable showed off a nice bullish pin bar off support. This looks to be ready to test 1.6400 and above. GBP data has been consistently decent lately.

gbpusd-d1-02042014

In The News:

Yen Weakens From 2-Month High as Refuge Bid Eases; Aussie Rises (Bloomberg)

Look ahead to Friday’s RBA Statement on Monetary Policy (ForexLive!)

Econ Events:

04:30AM GBP Services PMI
08:15AM USD ADP Non-Farm Employment Change
10:00AM USD ISM Non-Manufacturing PMI
07:30PM AUD Retail Sales m/m
07:30PM AUD Trade Balance

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