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The selloff continued in the cross pair with liquidation being the major theme.  Following the central bank decision to raise interest rates another 25 basis points weeks ago, traders decided to exit out of initial long positions for a summer reshuffle. With that said, stops kicked in at the 1.2180 figure bringing the pair through the 1.2150 in the <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />New York session.  Contributing to the downtrodden Aussie dollar was the most recent business confidence survey.  Reflective of sentiment in the month of July, the report saw confidence fall to a positive 8 reading.  The figure is comparative to the positive 16 reading in the previous month while subsequently the conditions expectations dipped to a 10 print. 

Comparatively, giving the New Zealand dollar a near term boost was the New Zealand housing market confidence report.   The figure gave the region hope as it stands as the first positive report in almost 18 months and lends to some optimism over the current state of affairs.  This will place a bulk of tomorrows focus on the unemployment report as the market is looking ahead to the ANZ Business PMI in countering any previous negativity.

Technically speaking, the underlying cross is hovering around the 0.6275 figure with plenty of sellers likely to emerge as we enter the Asian session.  Forming an ascending triangle in the 60-chart, the bullish suggestion is being countered with a longer term downtrend line on the daily perspective.  As likely, a test of the figure seems imminent before further downside is witnessed on heavy selling.

EURAUD

Coupled with Aussie selling on the day, the EURAUD cross pair was bolstered on the session by EURUSD major bidding.  With the Federal Reserve likely on hold with benchmark rates, market participants began to bid the major earlier in the session, filtering in against the bearish Australian dollar in the cross.  The hype in demand was contrary to the mornings report that indicated a slow down in German overall productivity.  Expected to rise 0.2 percent in the month of June, the figure declined by 0.4 percent.  However, the loss of momentum was minimal following a better than expected trade balance figure for the regions largest economy.  As a result, further attention is likely to be placed on Fridays consumer price index as the market attempts to find directional bias dependant on economic data.

Bouncing off of the daily uptrendline, the EURAUD looks ripe for a further push higher to a 1.7000 test in the intermediate term shown on a daily chart.  However, a major barrier at the 1.6900 resistance level is capping intersession gains at the moment with plenty of sellers emerging at the figure.  Should the ceiling collapse in the Asian session, bulls are likely to make a run for the 1.7000 figure where the skys the limit.  A failure would not preclude a continuance of the range with targets at the 1.6700 and 1.6600 even handles.

EURCAD

Finishing our list of the top three market movers is the EURCAD currency pair.  Marking a 0.4 percent climb the cross was bolstered by Euro major buying during the session as the pair reversed yesterdays gains, making them the Euros in New York.  Supportive of the move were crude oil contracts that have stayed relatively in line with the previous sessions fluctuations as the commodity settled down 88 cents at $76.30 on the Comex division of the NYMEX.  Canadian fundamentals were equally unimpressive as building permits for the month of June dipped below earlier estimates.  For the month the value of building permits issued in the month declined by 1.4 percent from the previous month, which saw a comparative surge.  Usually tied with economic development, the dour numbers continued the longer streak of overall tepid economic figures that have recently been witnessed in the worlds now ninth largest economy.  Simply, the report serves as the even more evidence to stand pat on interest rates by the Bank of Canada.  Looking ahead, likely lackluster housing starts are likely to cause a stir in addition to todays momentum.

Rising off of the channel support in the New York session, the EURCAD looks well bid for the Asian session with the next resistance barrier being placed at the 1.4450 figure.  Although feasible, in the hours owning up to the close, the price action has become suppressed as sellers are likely to have emerged on the days move.  A break here would see further upside potential with stops above the 4450 figure.  Comparatively, failure would see a sure retest of the 4350 level.