Aussie has been the main beneficiary of the current market conditions primarily from the USD weakness. And woould continue further into the coming week with market sentiments building towards the three majors including the USD still in the negative territory.
With the Republicans political uncertainty on the final stages of the tax plan thus far have been pushing the USD - DXY still below the 93.60 level at the moment. Although, the USD did have a relief recovery, Retail sales and lower jobless claims did not provide any lift after the figures came out.
The AUDUSD have gained ground trading above the 0.7550 to 0.7600 channel resistance that added to the selling pressure of the European majors as well. But CABLE and EURO are more susceptible to external fundamentals. As the Sterling Pound is also negotiating its next phase agenda that proved to be a negative effect as it is currently at 1.3332 after briefly marking the 1.3465 high two days ago.
Likewise, the EURO's reaction after the ECB left rates unchanged continued its upbeat outlook on the economy while still maintaining quite a 'Dovish Tapering' Tone as most analyst have described the current market conditions. With the EURUSD being the 3rd in line from being part of the weakness among the major pairs, it is still under selling pressure with prices trading at 1.1771 a far outcry from its more important price at 1.1880 which it retested near the 1.2000 dated Nov 27, 2017
The AUSSIE still continues to gain ground at 0.7791 levels with the weakness of the USD - DXY currently at the 92.67 to this writing. The effectiveness of the analysis have prevailed as the AUSSIE benefits along side the EURO at 1.1944 while CABLE is at 1.3445 after a few misdirection of prices due to UK BREXIT back & forth issues on the table.
ReplyDeleteThe USD Index is still in search of a bottom level as it navigates well within its current decline which pressures any price recovery to be short-live especially with the coming end of the year stock prices at their higher levels.