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The AUD/USD fell to 0.9131 at its lowest level

Varengold Bank Research Team from Varengold Wertpapierhandelsbank AG at 12/15/09


Good morning from cold Hamburg and welcome to our Daily FX Report. After we saw a comparative flat market yesterday we wait today some interesting economic data from Europe and the U.S. However, we wish you a successful trading day.

Market review

The USD strengthened versus 14 of its 16 major counterparts on speculation that the Federal Reserve will signal at a two-day meeting starting today that it is moving toward ending its policy of “cheap money”. The EUR/USD recovered from its early Monday losses and stabilized around 1.4640 level during the Asia session. Today a German report may show that the national investor confidence weakened for the third month in December. The ZEW index is expected at 50 points from 51.1 a month ago. Already yesterday a report showed a decline in European industrial output for the first time in six months as well as a rising unemployment rate. Greek Prime Minister George Papandreou pledged “radical” action to bring the country’s budget deficit within the European Union limits by 2013. “In the next three months we will take those decisions which weren’t taken for decades”, he said yesterday in Athens.

The AUD/USD came under pressure after the RBA said it discussed keeping its key interest rate unchanged in minutes of its December meeting. The AUD/USD fell to 0.9131 at its lowest level.


Since the beginning of December 2009 the EUR traded bearish versus the GBP. Close to its downward trend-line the currency pair decreased near to the support level at 0.8979. It remains to be seen how long this line could stop the bears or if the bulls even use it to enter the market again. As long as the EUR couldn’t cross the downward trendline we could expect further losses near the next support at 0.8911


At the moment we can see the same chart figure as last week. Last week we touched the weekly pivot point on Monday following a strong bearish movement down to the second support pivot point. We also note that the Momentum tumbled yesterday as in the last week. This may signalize that the GBP will continue its bearish trend and could fall near the second weekly support pivot point.

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