AUD/USD climbed to new highs in the wake of the quantitative easing decision in the US. The Australian dollar just got another reason to rise.
Next levels above are in uncharted territory, but can be marked at around 1.02 and 1.03. Below, 0.9915, 0.9850, 0.9750 and the strong 0.9660 lie beneath. More technical levels can be found in the recent AUD/USD outlook. This is an all time high since the currency began to float back in the 80s.
The $600 billion dollars announced created initial weakness. The market currently disregards the relatively slow pace of this dollar printing – a pace of only $75 billion per month, less than expected. Here’s is the analysis of QE2.
The Australian dollar already enjoyed a rate hike earlier this week. The rate hike sent it to 1.0023, and now this level is broken. AUD/USD is at 1.0030, after already reaching 1.0038. It’s important to state again and again, that the initial reaction to FOMC announcements isn’t necessarily the real move – it could turn around, and it can take many hours.
But as the Australian dollar already enjoys a very high interest rate, strong growth at home and strong growth in China, it has better chances of enjoying the ride.
Later on, we’ll have employment numbers from New Zealand – a quarterly release that has an impact on the Aussie as well. And then, we have the quarterly report from the Australian central bank – a report that has an important overview of the Australian economy, and always rocks the currency.
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