The USD/JPY trades near flat of around 88.82 after opening at 88.84
Varengold Bank Research Team from Varengold Wertpapierhandelsbank AG at 11/23/09
Good morning to our Daily FX Comment. We hope you had a nice weekend and you were able to start well-rested into a new hopefully exciting FOREX trading week. Today we are going to report about the USD after it dropped against a basket of currencies.
The USD dipped for the first time in three days versus the EUR on expectations the Federal Reserve will keep its stimulus measures in place and ensure interest rates remain low. The USD dropped against 15 of its 16 most traded counterparts while Fed Bank of St. Louis President James Bullard said that he would prefer to keep the central bank’s asset-buying program active beyond its current cut-off date, which would be the first quarter of next year. “Unemployment is high, and labor markets are lagging,” Bullard said while repeating his view that the economic recovery in the U.S. started. The EUR/USD climbed to 1.4922 from its low of 1.4833 and an opening of 1.4867. The AUD/USD climbed for the first time in five days after Asian shares boosted demand for higher-yielding assets this morning. Benchmark interest rates are as low as zero in the U.S. and 0.1 percent in Japan compared with 3.5 percent in Australia that boosts demand for the south Pacific nation’s higher-yielding assets. The USD-Index decreased to a low at 75.25 after it opened the week at 75.60. The AUD/JPY recovered after it fell during the past six trading days. It rose to 81.68 after opening at 81.26. The USD/JPY trades near flat of around 88.82 after opening at 88.84.
Today, the AUD/NZD reached a level close to its resistance at 1.2700. As you can see, this is the third time the market is trading around this point while it’s still inside the bullish trend channel, which was established around the end of September. If the market doesn’t break this level, it might return back towards the lower line of the channel and the support of around 1.2435.
Since the end of September, the AUD/CHF has been trading over the bullish Fibonacci fan. After trying to break the upper line of the Fibonacci fans, the market got support around the 0.9250 level. As you can see, the RSI also signalizes an oversold market. If the market doesn’t get back to the fan, it might return towards the resistance point of around 0.9400.
