Trading Point Daily Market Review – Asia Session-Aussie starts to drop from 29year high

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The single currency started the Asian Session by making some gains against the US Dollar and continuing to record a peak high of 1.4605 at midsession. Following that high the market moved downwards descending to a 1.4525 low. This low has eventually broken the 23.6% hourly Fibonacci level that was tested 3 times between last Thursday and Friday. However it failed to go any lower as within the last hour it has been moving up so far. Fear of a sovereign debt restructuring that is threaten by the economic condition of Greece that could lead to a banking crisis are possible to weaken the Euro tomorrow when all of the major markets will be open.

The Japanese Yen has suffered losses during the Asian Session. From the start of the session the USDJPY pair followed a steep upwards move to reach as high as 82.42 and hence record over 60 pips rise. The Japanese Yen showed an identical pattern against the Euro as well where it lost over 90 pips before starting to recover. Earlier in the day Corporate Service Index figures were announced for Japan for March at a -1.20% rate which was as expected. During the last 3 hours the Yen following the session high has been appearing to be recovering and time will tell if the losses against the weaker dollar will be capped.

The Sterling against the US Dollar gained a lead at around 00:00 GMT as within 45 minutes from that time it had gain a near 40 pips to record the session high of 1.6552. Following that high an even more steeper downwards took place bringing the GBPUSD pair to session lows in less than 2 hours. The Sterling has recovered from that low and is currently traded at 1.6611.

The Australian Dollar against the American Dollar is one of the currencies that attract the most interest. The Aussie opened the session around the same level the Friday session ended and moved a few pips up to bring the all-time high to 1.0775 at around 00:20 GMT. Following the high the Aussie recorded a 65 nose dive to reach a session low of 1.0711. Investors could view this as an opportunity to start shorting while others as a wave entry for long positions.

The value of Gold continued its impressive streak for a seventh straight session to record even higher levels. Gold is making gains benefiting from a 3 year old weak Dollar and increasing tension in the Middle East and North Africa. Gold value is currently at USD1515.15,the old time high, and continues to increase in value.