Aud Usd Forex Chart
Best Forex Broker Australia – Top Australian Dollar
Leading rusher Australian currency
Over recent weeks, some of the strongest currencies have experienced behavioral measurable corrections Against U.S. Dollar. After marking all-time highs, Euro collected about 700 pips and Swiss franc bounced almost 1000 pips, the Japanese lost 900 yen pips. Even high-yielding New Zealand dollar fell from a high of over 0.8200 to 0.7600 just above. These coins have joined the British Pound and the Dollar Canada, which reached their respective highs last year.
It appears that all major currencies have undergone some correction, in trade USD cross. There is a notable exception-Australia Dollar. Unlike others, the AUD lower not only lost, but he managed to reach a new multi-year high. As of this writing, mid-May 2008, AUD-USD is around 0.9560. While this is not a whole hour, the highest level seen since early 1980, or 25 years.
Why? Why is so strong as AUD and is it sustainable? We can always discuss high raw materials prices, but the reason likely differential interest rates. Australian Dollar is probably the last "carry trade", currently in progress. Reserve Bank of Australia rose its target benchmark rate to 7.25% effective as late as March 2008. No other major central bank has done this year. They are either rate cut or stay where you are. Even Reserve Bank of New Zealand has not changed rates since July 2007. Almost a year.
It is very unlikely that Australian Central Bank will keep the course. One should expect a pause or stop, even longer-term rates hike. No rate cuts are needed not only an action. Combined with projected softer prices of key commodities, which alone should be enough to see USD AUD retreat against and perhaps even all other large. Especially if its Crude Oil is behind the long price correction. Best Forex Broker Australia
What's next? If one goes forward and start at $ shorted? Not exactly. Picking the top accurate (or bottom for that matter) is considered by many a fool's game. We expect to see some acceleration in prices just before the summit. If recent movements in other currencies were any guide, they might witness 200-300 pips daily move to finish the race.
With the current prices of more of 0.9500, is not the realm of possibility to see a rebound in or near parity prices. This is extremely important psychological level. Whatever the top in last instance, could come as early as 2-3 weeks from now.
Instead of guessing at the top that could happen would be more productive sell order placed just below the current low level. At this writing that the level is about 0.9300. In case of promotion continue, 4H box will provide better entry points more accurate. Daily and weekly charts indicate a move from 0.8600 to 0.8500 likely, given in 6-8 to complete the moths. If during this time USD has shown that recent strength Truth is, our objective will be reviewed below.
current situation is very interesting and may represent a great business opportunity. Even perennial bears dollars as most people seem to be these days, you should recognize that in ten years moving much, there is room to be profitable on both sides of the market. It may just be one of these times. href = "http://funeasyforex.blogspot.com/?tid=articlebasebio13"> Best Broker Forex Australia
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Forex trading signal Feb 2010 AUD/USD