FRANCE'S GDP INCREASES 0.6% IN FOURTH QUARTER

The EUR/USD quotes restored positive dynamics today due to strong macro statistics from the Eurozone. The economy grew 0.6% for the fourth quarter of last year which met the average forecast. At the same time, the French economy expanded 0.6%, which is 0.1% better than the forecasted figure. Previously the US dollar increased due to the positive impact of the increase of yields in US treasuries. Tomorrow the course of trading may be influenced by labour market data due for the Eurozone and the FOMC meeting minutes’ release where traders will be looking for clues about the next steps of the Fed.  

The USD/JPY was not able to continue the upward correction and is currently consolidating in anticipation of new triggers. Some pressure on the yen came from the unemployment report for Japan which increased by 0.1% in December to 2.8%. On the other side, retail sales improved by 3.6% for the last month of the year, compared to 2.1% anticipated. Tonight, the course of trading may be influenced by the preliminary report on industrial production in Japan and the release of the Summary of Opinions by the Bank of Japan at 23:50 GMT.

An increase in volatility is forecasted tomorrow for the AUD/USD due to the publication of the consumer price index in Australia at 00:30 GMT and news on the manufacturing PMI in China that traditionally has a significant impact on the aussie quotes.

EUR/USD

The EUR/USD price was not able to fix below the 1.2400 support line and is currently heading upwards to the psychologically important level of 1.2500. The RSI on the 15-minute chart is currently near the overbought zone which hints at a possible price retreat to the closest support level at 1.2400. In order to change the rising trend to descending, the quotes need to break through 1.2300.

USD/JPY

The USD/JPY quotes returned to the strong support line at 108.50 and gaining a foothold under this mark may become the basis for the price to continue falling with the nearest targets at 107.00 and 106.50. In case of a rebound, and breaking through the resistance at 109.60, the trend may change with potential targets at 110.30 and 111.00.

AUD/USD

The aussie price approached strong resistance at 0.8125 and should it overcome that level it may lead to continued increases up to the 0.8220-0.8300 range. The MACD histogram just crossed the zero point that, together with the RSI on the 15-minute chart being in the overbought territory, points to a possible price drop to the lower boundary of the rising channel.