European majors weakened broadly overnight as dragged down by the news from Greece. There were some concerns that Greece cannot make the scheduled repayment to IMF. Even though Greece made a last minute repayment of EUR 450m, the damage to Euro was down and the common currency stays weak in Asian session. Technically, EUR/USD took out a near term support level of 1.0712 and should now be heading back to 1.0461 low for a test. EUR/JPY also took out 128.93 minor support and is heading for a test on 126.89 low. EUR/GBP is steady above 0.7221 as Sterling was dragged down by Euro.
US Dollar Index broke 98.66 resistance and the development argues that consolidation pattern from 100.42 has completed at 96.32. Intraday bias is back on the upside for a test on 100.42 resistance. As 95.48 near term support remains intact, the larger down trend is still in progress and break of 100.42 will indicate resumption. Meanwhile, below 98.01 minor support will argue that there will be one at least one more down leg before the consolidation completes.
On the data front, Australian home loans rose less than expected by 1.2% in February. China CPI was unchanged at 1.4% yoy in March while PPI rose to -4.6% yoy. Swiss unemployment, UK productions will be released in European session. Canada employment data will be the major focus today and could trigger a range breakout in USD/CAD. Canada housing starts and US import prices will also be featured.