EUR/USD Overview

The early plunge in the single currency against the US dollar was triggered by reports in the media that Greek Prime Minister Lucas Papademos failed to strike a deal with political leaders over spending cuts and lowering the minimum wage. Sensing the danger and to save the day, Chancellor Angela Merkel went on German television saying ‘the EU cannot accept a Greek bankruptcy’. The comment reversed the trend and the euro closed 36 pips higher at $1.3130. So, this game of pushing and pulling goes on but the rally which started mid January seems to be stalling.

Moving Averages:   9 day 1.3138     14 day 1.3092    40 day 1.2974

 

AUD/USD  Overview

Yesterday, the Australian dollar posted a decline versus the greenback, 55 ticks to 1.0724 largely on the back of a government report indicating a surprise drop in retail spending, adding further support for a cut in interest rates. However, surprise-surprise despite widespread expectations for a 0.25% slash, the Reserve Bank of Australia left the benchmark interest rate on hold at 4.25%. Consequently, investors reacted quickly this morning pushing the Australian dollar to a new 6 months high at 1.0810.

Moving Averages:   9 day 1.0687     14 day 1.0621      40 day 1.0343