Could Euro Weakness finally be at an end? Probably not, but last week was quite a rally off the lows. Looking forward to this weeks catalysts I see a few things Ill be watching.
First is the AUD. We have RBA Rate decision, AUD Unemployment numbers, and AUD policy statement. It should be telling on whether or not AUDUSD is overbought and if the AUDJPY is really breaking out for another leg to the rally. Speaking of the JPY, we have BOJ rate decision coming this week. Rumors have already started on intervention and possibly an expansion of easing after last weeks poor numbers in Japan. That could be telling for AUDJPY and the rest of the JPY pairs. Keep an eye on AUDJPY. The 82.50 area could be telling. US Equities just keep going up. It looks like we could retest the highs. For those not in this rally I find it extremely tough to get long here. On a relatively low risk news environment for the USD, Look for AUD and JPY to be movers with the CAD having potential on Friday with Unemployment numbers. Throw in some talking up saving the Euro and QE3 by The ECB and the FED and it could be an interesting week