Forex today: profit taking ahead of ECB, BoJ, Aussie bid eyeing jobs data

Forex today was modestly risk-on as the US session started to pick up half way through the shift, with the higher beta currencies picking up, especially the Aussie. 

The US dollar was mixed with a lack of a catalyst besides some positive second tier data in Housing Starts that supported DXY to remain above 94.80 support, up +0.21% on the day while the US-10 year benchmark was closing +0.39%.

Traders are awaiting the ECB and BoJ outcomes and the euro gave back some gains from 1.1555 to 1.1510 on profit taking of 1.1581 recent highs. EUR/JPY was sold off heavily from 129.19 moving into the US session that stabilised at 128.57 and recovered back to 128.83. USD/CAD also stabilised the offer from 1.2652 to 1.2578 lows, testing back through 1.26 the figure despite higher energy prices. Iron ore was bid among mixed metal prices, although the Aussie performed well eyeing the 0.80 handle and closing above the 0.7950 psychological mark.

Key events in Asian session

BoJ and Aussie jobs data.

Key notes from US session

• AUD/USD intermarket: risk on, headed for the 0.80 multi-year high resistance?
• US Pres. Trump to Senators: We have no choice, have to repeal and replace Obamacare
• US Housing Starts: Back on track - Wells Fargo
• USD/JPY: a dovish outcome expected from BOJ, a bearish bias for USD/JPY?
• WTI leaps to session tops above $47.00 on EIA