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USD range bound in quiet trading

10-Yr T-Note: -03/32..1.686%.. USD-JPY: 78.32.. EUR-USD: 1.2934

The Dollar Index has held in a tight range throughout US trade with action stuck between 79.70 and 79.80.

EUR-USD is +80 pips at 1.2930 as trade holds near session highs.

Early selling developed after S&P downgraded Spain, causing the pair to test support aided by its 200-Day MA. The Bulls prevailed and now have the single currency looking to test resistance in the 1.3000 area.

Eurozone industrial production is due out Friday morning.

GBP-USD is +35 pips at 1.6035 amid a relatively uneventful day. Sterling was able to hold 1.6000 support for a 3rd straight session with 1.6100 setting up as near-term resistance.

USD-CHF is -50 pips at .9340 as trade sits near session lows. Sellers remain in control as several attempts run the pair through its 200-Day MA (.9400) have failed. Key support lies in the .9250/.9300 area.

USD-JPY is +15 pips at 78.30 as trade fluctuates just above the key 78.00 area. Japan’s tertiary industry activity will be released tonight.

AUD-USD is +50 pips at 1.0270 following the Australian jobs data. The Australian economy added 14.5K jobs (5.1K expected) while seeing its unemployment rate tick up to 5.4% (5.3% expected, 5.1% prior). Current action has trade taking place on the 100-Day MA.

USD-CAD is -35 pips at .9785 as trade nears the important .9750 support area. The pair has failed a couple of times at its 50-Day MA and with a push through .9750 is likely to see a retest of the .9650/.9700 area which represents levels last seen in 14 months.