Daily Market Outlook
The Australian dollar had recovered a little positive distance against the American dollar. This was as worries which were prompted by the devaluation of the Chinese currency were beginning to calm down with data revealing that the expectations attached to Australian inflation had increased last month. AUD/USD had touched 0.7332 as for late Asian trade marking the session low. Consolidation came at 0.7370
For the week, the euro has put on gain of the extent of 1.4% moving a little positively against the American dollar in the last trading month. The American dollar finished the euro’s winning streak which had lasted three days on Thursday coming up by a little margin of 0.07% for the session. EUR/USD consequently gained support at 1.0808 which is its low from July 20 facing resistance at 1.1213.
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The Australian dollar against the greenback has been rising in the recent trading, reaching its highest since May 2012 at 1.0400. As the probabilities for more monetary stimulus by the FED are increasing and concerns for Europe are growing, investors put their money in higher yielding currencies like the Australian dollar. Looking at the chart the Aussie against the US dollar has been advancing in the last four trading sessions penetrating the previous resistance at 1.0328 and reaching fresh highs. The next possible resistance is seen at 1.0421 which is the 138.20 per cent of the last downward correction from 1.0328 to 1.0094. Lastly, the Oscillators are reaching the overbought zone, the Momentum (7) is not yet at extreme up levels however is closing to the previous peak level at 102.64 and that could hold the FX pair below the resistance at 1.0421, at the same time the Stochastic has just entered the overbought area.