DB Spot Trading Morning Report:

(NOTE: Pre Yellen news)

EUR
Open 1.3573 Support 1.3540 Resistance 1.3650

Euro continues to be pinned in a tight holding pattern as market reactions to the US govt shutdown remain confined to equity markets.
We continue in our wait and see approach with no new direction likely until we have some clarity in US politics.
Orderbook remains well supported on the downside indicating the topside might be the path of least resistance.

AUD
Open 0.9420 Support 0.9390 Resistance 0.9480

We finally broke the upper resistance at 0.9450, it looked for all money we would see a material follow through but nope, everything suddenly reverts back into range
Like cable, AUD is realising quite a bit intraday but close-to-close there appears to be nothing happening
Employment data tomorrow will be the domestic catalyst to watch for, until then I remain largely sidelined
Westpac consumer confidence data out today at 10.30AM Sydney time

JPY
Open 96.95 Support 96.75(200 DMA) 95.75(TL) Resistance 97.60 98.30(20 DMA)
Open 131.60 Support 131.00(TL) Resistance 132.70


USDJPY traded range bound, top side still looks capped even while there are continuous bids on down side.
Book-wise; Net light bids down to mid 96s, then long-liquidation int below . Mixed on upside with short-covering int above mid 97s and offers.
I am very light short YEN through cross, mainly on a lot worse-than-expected C/A release yesterday whose impact should be minimal while US issue drives market yet.

NZD
Open 0.8295 Support 0.8250 Resistance 0.8330

Ranges are holding in Kiwi but choppy trading remains at the order of the day
Card spending numbers this morning came out much worse than expected at -0.8% vs 0.3% exp, but NZD was relatively unchanged
I prefer buying dips to 0.8250 today while AUDNZD remains directionless for me at these levels

CAD
Open 1.0370 Support 1.0350 Resistance 1.0410

USDCAD finally breaks out of its recent ranges and having closed above the pivot level of 1.0360, further upside pressure is expected
The orderbook supports this view so expect CAD underperformance against its peers from here on in
Housing starts were slightly better than expected, but overall the local data pulse in Canada has been poor of late
I am long USDCAD, looking for an extension above 1.04

GBP
Open 1.6085 Support 1.6010 Resistance 1.6130

Strange moves continue in cable, we are realising a lot of intraday volatility but close-to-close it would appear nothing is going on
Yesterday the scapegoat was the LTRO announcement, at first suspected to be new but later confirmed as already existing
I have absolutely no idea why cable then proceeded to rally 100 points - I guess there was pain lurking above 1.61 figure and it certainly seems to be trading in that direction of late
I am square here, little inspiration to trade it having been chopped to pieces over the past few weeks and seeing these irrational intraday moves

CHF
Open 1.2270 Support 1.2215 Resistance 1.2312
Open 0.9040 Support 0.8970 Resistance 0.9080

Overnight unemployment rate was in-line with expectations @ 3.0% and 3.2% SA. CPI MoM was a touch higher @ 0.3% but in-line with YoY forecasts.
The market remains rangey in USDCHF and EURCHF with plenty of opportunities to break out if we see some type of resolution in Washington.

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