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For years, savvy traders have incorporated sentiment into their trading approach. 

9170 and 9300 are potential resistance levels for the AUDUSD. A drop below 9050 is needed in order to suggest that the larger trend has turned back down.

The New Zealand dollar extended the rally from earlier this week and is the best performing currency against the greenback on Wednesday, while the Japanese Yen weakened across the board and retraced the two-day rally against the U.S. dollar.

The Canadian dollar continues to find support on strong domestic fundamentals and an increase in broader optimism. The USD/CAD has closed lower for eight straight days and is looking to end that streak today. However, we have seen daily volatility condense which has created an ideal scalping opportunity. The pair continues to trade along a descending support trend line which is limiting downside risks and providing a target level for traders.

The AUD/CHF remains in a strong uptrend with a new 20-month high being printed this morning.

The German trade balance surplus unexpectedly shrank in January from 13.4 billion to 8.0 billion as falling exports offset rising imports. Demand from abroad dropped by 6.3% against forecasts for a 0.5% improvement led by weakness from other Euro-zone members.

While most currencies have been consolidating or tracking lower against the buck on the day, Kiwi stands out and has actually outperformed, with no direct catalyst for the demand other than some pre-RBNZ volatility.

 The Euro tipped lower against the greenback on Wednesday, with the exchange rate slipping to a low of 1.3545 during the overnight trade, and the single-currency is likely to maintain the narrow range carried over from the previous week as policy makers in Europe aim to support the economies operating under the fixed-exchange rate system.

Oil and gold prices may decline amid expectations for a sharp increase in borrowing costs as the US Treasury’s monthly budget statement shows the largest monthly shortfall since records began nearly 33 years ago.