A lot of major currency pairs are trading close to record highs, which is mostly caused by the weak USD and JPY. As more the USD falls as more investors expect a decision of higher interest rates by the Federal Reserve. However we hope you had a great week and wish you a nice weekend.
Market review
The USD and the JPY reached weekly losses against higher-yielding currencies after China said industrial production increased more than assumed. The JPY fell after the Nikkei 225 Stock Average raised to a high of 10,089.15 today, the highest level since the past eight months. It rose over 3 percent this week. The NZD/JPY climbed for the fourth week to a high of 63.40. Optimism around the world cut demand for the USD and JPY. The AUD, NZD and GBP climbed the most versus the USD this week of the 16 major currencies. Nevertheless reports may show today that European industrial output fell as a slower pace and U.S. consumer confidence improved, economists said. Currencies like the CAD headed for weekly gains after the crude oil price climbed over 73$ a barrel yesterday, which was the highest level since October 2008. The USD/CAD fell to a low of 1.0942 this week and is trading currently around 1.108. The EUR gained also against the USD this week, touching a high at 1.4178. It rose 0.8 % and trades currently close under the 1.41 level. The GBP gained almost 3.5 percent against the USD this week after touching a high at 1.6622, which is close to its peak from June 3rd, the highest one since October 2008.
AUD/USD
As you can see the AUD has been trading in an upward trend channel against the USD during the past four months. It has touched the resistance level at 0.8275 for the second time. If it breaks through this line it may increase inside the channel towards the important psychological and technical resistance level of 0.85.
AUD/NZD
The AUD/NZD has made very clear movements inside the Fibonacci retracement lines during the past eight months. Currently it seems to be on the way to touch the 100% Fibonacci at 1.2937, which has been already touched three times. But if it breaks the green bullish trend line it may fall towards the 76.4% Fibonacci at 1.2397.
