The global currency market is quite dynamic and records trends that are surprising. Such an unpredicted move has been seen in the British Pound, which moved up in a steep fashion, more than 60 pips, breaking resistance at a value of 1.5270 to position at 1.5320, its session’s peak. This high came gradually after starting off low at 1.5130, in opposition to continue the pursuit of the prominently placed US Dollar, which had indicated significant highs compared to the Euro. Analysts shed light on the situation by stating that any correction above refers the 1.5320 area as the principal zone for selling. Conversely, lower than 1.5200, should be referred as contradiction with any probability of moving above and should indicate new lows.
In response to the comments by RBA during the initial stages of the session, the AUD/USD indicated highs, positioning new heights at a value of 1.0322, currently at a position of 1.0315. The Australian Dollar is also showing more strength compared to the Euro, with new one-month lows related to the EUR/AUD at a value of 1.2791. The week so far, also witnessed positive results for AUD/USD, moving up a bit by +0.16%. Australia’s ASX index moved ahead by almost +1%, during the day.
With doubts over how long the quantitative easing of the U.S. Federal Reserve will continue, the dollar swayed near a five and half month high, as compared to the other currencies, on Friday. The dollar index, which evaluates its position, with reference to six principal currencies, fell 0.2%, to a value of 81.265, having increased 0.8% as far as this week after having moved up as high as 81.508 observed on Thursday, its peak level since Sept. 5.
The downward trend in the New Zealand Dollar in comparison with the US Dollar, described two major factors. The indication that the RBNZ may be moving its concentration in the direction of a dominant role so as to steer away from the upward trend of the currency is discussed as the former factor. The second factor is described as the rally stimulated by FOMC details, which witnessed the US Dollar move higher on Wednesday.