Markets were relatively choppy overnight as the week started quietly. That said there was still some range for the key Asian pairs.

The AUD/USD was up and down as markets absorbed a few key events.

Last week, we saw a better than expected US jobs report, but that failed to really follow through. The reality might be that markets are already pricing in a recovery on the jobs front as much as anything.

The second issue remains the failed US stimulus attempts. While Trump did sign an executive order, the situation is still far from resolved and that will weigh on markets until there is an outcome.

On top of that, the holiday period is here in the US and post-earnings, that can contribute to lower volumes and less volatility.

AUD/USD

For the AUD/USD the 0.7200 level is still the most important level of note. We can see that price has rebounded nicely off this trend line that has been forming for a while now, which does reflect the way markets have recovered.

The Aussie is very strong is Asian trade and is currently up 0.3% and looking OK. A break under 0.7100, will kill the trendline and throw a bit of a spanner in the works.

NZD/USD

The NZD/USD is a fair bit softer than the Aussie at the moment and that is reflected in the fact that price is bouncing between 0.6600 and 0.6700. While the longer-term trend might be up at the moment, that range is not looking like moving.

We do, of course, have the RBNZ tomorrow, but I can’t see how we would get anything market moving at the moment. Short of a huge stimulus announcement that no one saw coming.