By: DailyForex.com
The release of unexpectedly improved March factory activity figures from Germany gave a lift to the common currency which stayed close to a 1-week peak against the greenback. As reported at 9:30 a.m. (JST) in Tokyo, the EUR/USD pair was trading at a session high of $1.3195 before settling back at $1.3158; the May 1st high is setting the first level of resistance at $1.3243, but a break at that level will bring prices not seen in several months. Investors had been concerned that the ECB would act on its promise to intervene with additional easing in the event incoming data showed signs of deterioration; this data from the Eurozone powerhouse has served to allay some of those concerns and whetted risk appetite.
The Euro’s gains from an earlier 2-month high against the Aussie dollar are in the process of being erased in the wake of unexpectedly strong jobs data from Australia; currently the EUR/AUD pair is lower at A$1.2860, moving off a session high and 2½ month pea of A$1.2949. The AUD/USD pair is higher at $1.0235. The Aussie has been under broad pressure since the Reserve Bank of Australia lowered its cash rate.
Also moving higher was the Kiwi dollar, which got a lift from a better than expected labor report. Following yesterday’s sell off after the Reserve Bank of New Zealand announced its own intervention of the too strong Kiwi Dollar, the NZD/USD pair traded higher at $0.8470, a gain of more than 50 pips.