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Analyst Paul Ebeling of www.livetradingnews.com takes a look at EUR/USD, AUD/USD, USD/JPY, USD/CHF, USD/CAD, GBP/USD

10-Yr T-Note: +01/32..1.589%.. USD/JPY: 81.16.. EUR/USD: 1.2774

The US Dollar Index held flat near 81.05 after some losses that developed early in the US session following this morning’s economic data. The effects of Superstorm Sandy were noticeable in both the claims data and the Philly Fed survey.

EUR/USD is +40 pips at 1.2775 as the single currency trades higher for a second straight session. Early buying tested the resistance near 1.2800, but sellers defended the 200-Day MA, and dropped the pair back below the Key mark. Today’s bid comes as individual countries, France, Germany, Italy posted better than expected GDP readings, but the Eurozone as a whole was unable to avoid recession, seeing -0.1% Q-Q reading for Q-3 GDP. Eurozone data is limited to the current account balance.

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GBP/USD is +20 pips at 1.5855 as trade checks at the Key mark. This area has been a target on many traders’ radars as both the 100 and 200-Day MAs aid support in the vicinity.

USD/CHF is -25 pips at .9425 as trade pushes lower for a 4th day. Early selling provided a test of the important .9400 support mark, but bulls were quick to defend the 200-Day MA which is providing additional support. Swiss National Bank Chairman Thomas Jordan will speak in Zurich on “Monetary policy in the financial crisis, measures, effects, risks.”

USD/JPY is +95 pips at 81.15 with action on track for its best close in nearly 7 months. Thursday’s surge came after Shinzo Abe, the leader of the Liberal Domestic Party and favorite to be the next Japanese Prime Minister, suggested the Bank of Japan should cut rates to Zero or even turn them negative. USD/JPY has tacked on nearly roughly 200 pips over the past two sessions, and is seeing its best two-day rally since 31 October 2011 when the Bank of Japan intervened in the yen. Resistance lies in the 81.00/81.50 area while 80.50 now provides near-term support.

AUD/USD is -45 pips at 1.0325 as action holds on the 200-Day MA Today’s slide has the hard currency on track for its lowest close in 3 weeks, and with a breakdown of current support the pair will likely test the 1.0200 area.

USD/CAD is -20 pips at 1.0015 amid a choppy session. Early selling once again provided a test of parity, but the Key level held for a 5th day running. Canada’s foreign securities purchases will cross the wires Friday morning.