Good morning from wonderful Hamburg. Before the week is out we can report, in contrast to the rest of the week, about hopes and concerns from around the world. Nevertheless we hope you enjoyed the week and wish you a very nice weekend.
Market review
The AUD and NZD touched their biggest fall versus the JPY in two months as slower economic growth in China revived concerns that the global recession may deepen. Thereby demand for higher-yielding assets decreased. This both currencies weakened also against the USD after U.S. housing starts to fall more than economists anticipated and a record number of people collected U.S. unemployment benefits. The AUD reached its smallest weekly gain against the USD since its seven-week winning streak began at the beginning of March. It climbed just 0.1%. The AUD/JPY fell 0.64% this week, after clear gains during the past 8 weeks. The AUD also fell versus the GBP. It fell over 480 pips and touched a weekly low at 2.0841. The NZD decreased to a low of 56.05 after it opened the week at 58.75 against the JPY. The NZD seems to be more under pressure after expectations from economists say the RBNZ would “embark more aggressive policy easing”.
The EUR fell after ECB President Trichet said today the central bank has to do everything possible to restore confidence, leaving room for further interest rate cuts. The EUR fell for a second week versus the USD and is trading currently around 1.31.
EUR/CAD
Since the beginning of March the EUR/CAD has been moving in a downward trend. The MACD is still showing a short signal, but the spread between the lines is not huge. Additionally we can see their 2 support lines and the pair already crossed the lower Bollinger band. The market could show a recovery phase if the 1.5560 support level will be reached.
EUR/AUD
As you can see the EUR/AUD is moving clearly inside a bearish trend channel since the middle of March. The current Pivot P (W) is showing the exact same resistance like the Pivot S1 from the last week. We see two very strong resistance levels. One of them is the upper line of the channel and the other the pivot point at 1.8515. If the market doesn’t break these lines we may expect further falling movements inside the channel.
