Daily Market Review – AUDUSD is set to make a new multi year high

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Thursday was a day of turbulences and high volatility for the EURUSD pair, as initially the pair plummeted to a four days low of 1.4052 on Standard and Poor’s downgrading of Portugal’s credit rating by two notches with further slashing in the horizon. However the losses for the common currency were limited as the downgrades have been well discounted from the markets, sovereign buying for the Euro directed from Asia bolstered the pair and combined with weak US economic data in the day rocketed the EURUSD which climbed again at the 1.4200 levels depreciating most of the losses. Throughout the Asian session the single currency was hovering between 1.4182 and 1.4149, while investors are concerning this sluggish move as base to retest the 1.4281 level of November 2010. There are not important economic data from Europe today apart from the EU Economic Summit, the important news are coming from the United States, where the GDP data will be released at 12:30 GMT with forecasts to point to an impressive increase in the Annualized rate for the fourth quarter of the previous year. Currently the EURUSD pair is trading at 1.4172.

Despite the fact that the US Dollar is generally frail across the board the Sterling fell against the greenback on Thursday due to poor Retail Sales data and the negative BoE minutes released the day before and not abiding by the positive correlation which traditionally has with the EURUSD pair. The last Asian trade for this week for the Sterling was more or less flat against the Dollar as it was traded between as session low of 1.6097 and a high of 1.6130, without giving clear signs for its direction further in the day. The GBPUSD pair is now trading at 1.6116, stacked close to the trough. The GBPJPY was for another session flat as it was traded in a narrow range, the price for the pair currently is 130.51.

The Aussie in the late US trade almost achieved a new 29 year high, however during Asian session was held lower. Investors believe that the pair will break above the multi year high as the high commodity prices and the risk appetite in the global markets are giving to the commodity currency continuous boost. The AU Dollar is now trading against the US Dollar at 1.0203, eyeing the 29 year high of 1.0254 achieved on December 2010.

If somebody will observe the hourly chart of the USDJPY will come to the conclusion that the present week was silent for the pair compare to the previous week, where we had the massive fall due to the earthquake the tsunami and the nuclear crisis in Japan and the impressive rebound after the G7 market intervention. The Asian session could not break the rule of the limited moves of this week. The Dollar hit a high of 81.03 against the Japanese Yen and a low of 80.94, a fluctuation of only 9 pips in a whole session is a very good indication of the skepticism with which the investors are facing the USDJPY pair after the intervention. The pair now is trading at 80.98, in the middle of the session’s range. The EURJPY pair it can be said that it was slightly more vivid in the day than the major pair, nevertheless its moves in the session cannot be characterized other than sluggish. The cross pair is now trading at 114.74.

The safe haven metal earlier today touched a new all time high of USD 1447.5 an ounce, the second in the present month amid of the turmoil in the Arabic world and especially in Libya and the collapse of the Portuguese government. Gold did not hold the gains for long as it fell during the US trade, bouncing back slightly at the Asian session, touching a session high of USD 1434.3 an ounce. The spot gold is now trading at USD 1433.2 per ounce.