The dollar fell 0.1 percent to 119.02 yen

Good morning from Hamburg and welcome to our last Daily FX Report for this week. The International Air Transport Association said last month’s Germanwings crash mustn’t set a precedent in handing the lead investigatory role to criminal prosecutors. While it was reasonable for French and German prosecutors to play a key part in the inquiry given the likelihood that the March 24 tragedy resulted from a pilot suicide, a shift toward criminalizing probes could cause people to withhold information to protect their own interests, IATA Chief Executive Officer Tony Tyler said yesterday in an interview in Madrid.

Anyway, we wish you a successful trading week!

Market Review – Fundamental Perspective

The euro’s share of global allocated reserves fell to 22.2 percent at the end of the fourth quarter, according to data form the International Monetary Fund. That’s the lowest in 12 years and is down from 28 percent before the region’s debt crisis five years ago. Market-leading dollar holdings reached 62.9 percent, the most since 2009. The 19-nation currency climbed 1.1 percent to $1.0796 Thursday in New York. The dollar dropped the most in almost two weeks on concern the U.S economy, one of the strongest among developed countries, has lost traction this year. The greenback fell against all of its major peers as reports on housing starts and jobless claims were weaker than projected, adding to below-forecast readings for American factories, payrolls and retail sales. The dollar’s decline was the most pronounced against so- called commodity currencies, including the Swedish krona and Australia’s dollar. The Bloomberg Dollar Spot Index, which tracks the U.S currency against 10 major peers, fell 0.7 percent to 1,186.07 at 5 p.m. New York time. The decline was the largest on a closing basis since April 3. The Index is up 4.9 percent this year, after gaining 11 percent in 2014. The dollar slumped 1.6 percent against the krona and the Aussie on signs the economies of commoditites-producing nations are firming. Australia added twice as many jobs last month as analysts forecast. The dollar fell 0.1 percent to 119.02 yen. Brazil’s real climbed to a six-week after disappointing U.S. housing report added to speculation that the Federal Reserve will keep borrowing costs low for a longer period of time, supporting emerging markets. The real remained the most volatile among 16 major dollar counterparts, falling earlier on speculation that Brazil’s central bank will reduce rollovers of foreign-exchange swaps that were sold to support the currency.

Daily Technical Analysis

AUD/USD (Daily)

Yesterday the AUDUSD touched a significant short trend line. The currency pair climbed above the level of 0.77 very close to the ‘big number’ 80. The chart history shows very clear downward swings. The one support was touched 3-times last months which might open speculation to a further price correction.

Support & Resistance (Daily)