Today is expected to be the day that EU finance ministers will approve the second bailout package for Greece. We hope that markets will breathe a collective sigh of relief as this leaves plenty of time to spare before the Greek bond repayment which is due of March 20th. After this crisis ends, markets will ponder what else needs to be solved in Europe. Support for the EURUSD is seen at 1.3050 and resistance is seen at 1.3300. The Inside View indicator on HotForex shows that 76% of traders are short on the EURUSD.
Japan reported that its trade deficit reached a record high in January. The trade deficit rose to 1.475 trillion Yen from 205.1 billion Yen in December. Imports rose 9.8% in the last twelve months and exports fell by 9.3%. The rise in imports was attributed to record imports of fuel, which rose 23.6%. Exports fell on account of the persistently strong Yen. The USDJPY declined after the news release breaking a four day rally. Support for the USDJPY is seen at 76.80 and resistance is seen at 80.50. The Inside View indicator on HotForex shows that 92% of traders are long on the USDJPY.
New Zealand reported that PPI in the fourth quarter of 2011 rose barely at 0.1%. The slight increase was attributed to price increases paid to sheep and cattle farmers. The price paid to dairy farmers also rose 3.3% in the fourth quarter. The Kiwi has been one of the best performers against the U.S. Dollar in recent days with the pair trading above 0.8400 despite global financial uncertainty. Later today will have inflation expectations data release. Inflation is expected to hover near the 2.8% level in the next two years. Support for the NZDUSD is seen at 0.8250 and resistance is seen at 0.8500. The Inside View indicator on HotForex shows that 52% of traders are long on the NZDUSD.
There is little on the economic calendar today. U.K. Right move housing price index rose 4.1%. Retail sales data released on Friday surprised to the upside when it printed at 0.9% growth in the month of January. This has pushed the British Pound higher and we expect further rise once the Greek deal is approved. Support for the GBPUSD is seen at 1.5700 and resistance is seen at 1.6000. The Inside View indicator on HotForex shows that 60% of traders are short on the GBPUSD.
Australia is expected to release monetary policy meeting minutes which will shed light on the unexpected decision by the Reserve Bank of Australia to hold rates. It was widely expected by markets that the RBA would cut rates by 25 basis points in the face of global economic uncertainty. RBA Glen Stevens is also scheduled to speak today in Sydney. Support for the AUDUSD is seen at 1.0700 and resistance is seen at 1.0900. The Inside View indicator on HotForex shows that 59% of traders are long on the AUDUSD.