Daily Market Review – Asian Session – Aussie reaches new high as risk appetite continues

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The Euro gained against the USD in today’s first session, buoyed by interest rate anticipation in the next month and consecutive months to come. The highly anticipated interest rate hike by the European Central Bank echoed a healthier global economy – a view that has seen the Forex market participants seek to invest in riskier, higher yielding currencies and as a result has helped such currencies as the Euro to gain across the board. The single currency opened at 1.4124 against the Dollar and has gained some 20+ pips to reach a session high of 1.4146. The EURUSD currency pair remains firm and still within sight of the November 4th high of 1.4281 – a level at which the pair faced strong resistance in the early part of last week.

 

The Sterling gained throughout the most part of the Asian session, pushing the GBPUSD to this week’s high of 1.6111 from a session open of 1.6080. The recent movement, when viewed from the one hour chart, sees a reversal in trend for the British pound after having formed a double bottom formation and see’s it moving with an upward trend. The GBP had incurred some losses in the past week and a half prior to yesterday, as a result of some weak UK data that has suggested a fragile British economy, while at the same time the USD was boosted by comments made by US Fed Bullard with regards to cutting back on its current monetary stimulus by around 16%. The current level of the GBPUSD is around 1.6097 with support seen at the 55-Day moving average at 1.6062.

 

The Japanese Yen began the session by dropping to a new 20 day low against the Dollar and pushing the USDJPY pair to a high of 83.20, but saw a reversal in trend around 12:30GMT, as the USDJPY pair’s gains appeared to meet a strong resistance some pips away from the March 11th high of 83.28 and the pair dropped by some 60+ pips to surpass a previous trough from the uptrend seen on the hourly chart at 82.76 and reach a session low of 82.55. Should the pair continue in this downtrend and produce another bearish candle on the hourly chart, we may expect to see a reversal of trend. Support for the USDJPY is seen at the 55-Day exponential moving average at 82.01, with further support around 81.50 – Where the 10 and 20 Day moving averages overlap.

 

The Australian Dollar reached yet another 29 year high today, climbing as far as 1.0345 against the greenback in mid Asian session as a successive run of positive economic data, including February’s Retail Sales and Privet Sector credit data, which appeared to give the Aussie a boost. The AUDUSD currency pair has since then retreated and has dropped below the Asian session open of 1.0325 to reach the 1.0313 levels as we approach the end of the Asian session. The recent appreciation of the Aussie has been attributed to the increase in risk appetite by the Forex market – an event that has favored the AUD due to its high interest rate of 4.75%.

 

Gold has steadily appreciated throughout the Asian session by slightly over $5 per ounce, reaching a high of $1427.4 as it crosses over its 10-Day simple moving average at $1425.3. When viewed from the hourly chart, the recent movement of the safe haven currency, should it manage to break past yesterday’s high of $1429.8, shows a break from the recent downward trend after having made a triple bottom around the $1411.4 level.

 

EURUSD USDJPY GBPUSD AUDUSD EURJPY GOLD
OPEN

(21:00 GMT)

1.4124 82.89 1.6080 1.0325 117.08 1422.0
DAY’S HIGH 1.4146 83.20 1.6111 1.0345 117.53 1427.4
DAY’S LOW 1.4115 82.55 1.6066 1.0309 116.73 1420.3
CLOSE

(06:00 GMT)

1.4137 82.82 1.6093 1.0333 117.10 1425.9