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AUD/USD at Fresh All-Time Highs After QE2

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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Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.