The EUR also strengthened against the JPY

Good morning from Hamburg and welcome to our Daily FX Report. Yesterday, the American Meb Keflezighi won the Boston marathon which was the first time an American runner has won since 1983. It was the end of a successful revive of the marathon after last year’s devastating bombing.

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Market Review – Fundamental Perspective

The USD has accomplished the longest period of consequetive daily wins against the yen since October 2012 and gained the 7th expected to show a further strengthening, which might increase the demand for the USD. Referring to estimates among economists, the Richmond Fed’s factory index might appreciate to 2 in April from -7 in March. All readings above zero are signs for a strengthening of the economy. Also the Bloomberg U.S. Dollar Index was close to a two week peak after the leading indcators climbed the most in four weeks. The index of leading indicators were released by the Conference Board and it fetched 0.8 percent in March, the highest since November. A gauge by Bloomberg News had predicted a surplus of 0.7 percent. The Index shows the performance of the U.S. currency versus its 10 most traded currencies and it rose to 1,011.46 after having touched 1,011.50 before, the best since the 7th and was at 102.65 JPY following a 1.1 percent rise in the last seven trading days. Meanwhile, the USD remained nearly unchanged versus the 18 nation’s currency and traded at 1.3793 compared to 1.3794 the day before. Besides the USD, the EUR also strengthened against the JPY rallying to 141.60 from 141.55 establishing a 0.6 percent increase in the past five days.

In contrast, another gauge among Bloomberg analysts is estimating that the European Commission probably will announce that the consumer confidence in the euro area remained at -9.3 this month compared to the previous month, the best since November 2007.

Since the beginning of this year, the AUD grew 4.9 percent to 0.9349 due to stronger than expected rising home prices and a weaker unemployment rate.

Daily Technical Analysis

AUD/USD (4 Hours)

From its low around 0.9205 on the 3 resistance level around 0.9460, the Fibonacci Retracement level 100.0. There the increase was haltered and in succession the rate weakened down along a bearish trend line to the support around 0.9332. Currently, we can see a bullish boost to the trend line by approaching the resistance level around 0.9362. But both indicators are showing signs that the power of the bulls is decreasing, why we might see a return to the support level.

Support & Resistance (4 Hours)