Good morning. The optimism of the end of the recession seems to be cooled down again. In the middle of the week we reported better news but unfortunately we end the week as like as we started it. However, we wish you a nice weekend and good luck.
Market review
The EUR fell to its biggest weekly in three months against the JPY before a European report today may show the region’s economy shrank at the fastest pace in at least 13 years, economists say. The JPY and the USD headed gains against almost all the most-active currencies this week as major stock markets were for their first weekly loss since March 6th. The MSCI World fell 3% this week as a U.S. government report showed retail sales unexpectedly fell and China’s exports slumped more than forecasted. The USD/JPY fell almost 3% this week after it opened at 98.82 and touched a low of 95.11. The EUR/JPY fell over 300 pips this week, touching a low of 128.87 which was the lowest since April 29th. The EUR/USD has been volatile but didn’t make a huge weekly movement. It opened the week at 1.3627, touched a low of 1.3526 and is trading currently around 1.3630.
The NZD fell against all the 16 major currencies after a report showed retail sales dropped almost twice as fast as economists expected. The volatile NZD/JPY fell over 350 pips this week as it touched a low of 55.91 and a high at 60.37. The AUD/NZD touched a weekly low at 1.2558 after it opened at 1.2717. But it rose finally 0.7 percent and trades currently around 1.2811.
AUD/JPY
After touching the upper Bollinger band the AUD/JPY crossed over the 73.50 support line and reached the middle band. The market is currently exactly trading in the middle of both lines. If it breaks the 73.50 resistance, it may rise towards the upper band and if it crosses the middle band, it could fall and reach the lower one.
AUD/CHF
Since the end of February the AUD has been trading inside an upward trend channel against the CHF. After its clear touch with the 0.8650 resistance line, the market pulled back and touched the lower line of the trend channel. If it goes trough the lower line, it could fall towards the support line around 80.70.
