Good morning from beautiful Hamburg. Hamburg awakes from its hibernation slowly from day to day. Unfortunately, the March begins as turbulent as the February ends and the fear of the World’s largest economy crisis since the Second World War will grow up. However, we hope you enjoyed your weekend and we wish you a prosperous trading day.
Market review
On Sunday the European Union leaders met each other in Brussels to discuss about a new aid package for Eastern Europe. It didn’t get the necessary acceptance and was rejected by the European ministers. In order of this, the EUR declined to a one-week low against the USD on concerns that the financial crisis will deepen the 16-nation region’s recession. Today, in the early Tokyo trading the EUR/USD fell to 1.2546 after its high at 1.2750 on Friday. As well the EUR/JPY lost some of its last week gains and fell 2.86 % from 125.55 at its high to 121.96 at its low. “Risk aversion is re-emerging, so the USD and the JPY are being bought” said Yuji Saito, head of the foreign-exchange group in Tokyo at Sociéte General.
The NZD fell to a 6 ½-year low and also the AUD extends its weekly declines after U.S. and Asian shares slumped. It prompts the investors to seek the safety of the USD. Additionally, incriminatory for the AUD affected the statement from Australia’s Treasurer Wayne Swan, he said that the economy will feel the effects of a “dramatic” global slowdown, which has pushed at least seven of the nation’s 10 biggest trading partners into recession. Also Australia’s manufacturing shrank at a record pace last month, about 4.9 points to 31.7, the lowest level ever.
GBP/AUD
The currency pair quit its strong bearish movement with the beginning of 2009. It recovered and has been trading in a bullish trend-channel. The GBP/AUD tested for several times its resistance at 2.2633. As long as the trend-channel is not broken it seems that a new attempt to break it is started. Crossing the resistance line could boost the bullish trend.
AUD/JPY
Since February the AUD/JPY has been trading along a bullish trend-line and touched its resistance point at 64.82 on February 26th. Afterwards it dropped down to the trend line and crossed its support level at 62.12. Now it seems that the bullish trend-line have to attest its power. If this trend-line will break as well it could be a strong bearish signal.
