By: Bastian Rubben
Strong opening for the second quarter in the US stock markets yesterday, as indices rose 1%, NASDAQ created a break-up pattern and S&P has already crossed above the annual picks. The rising came on the background of a bit better than-expected ISM manufacturing PMI data, which was good enough to encourage the buyers.
The USD traded in mixed territory yesterday, as the Australian dollar was one of the currencies that weakened against the USD. It closed the day with Doji-candelstick that indicated for a bullish momentum, but the RBA rate statement this morning pulled the Aussie down.
The pair AUD/USD has been moving through a downtrend channel since it reached the pick on mid February, and after touching the lower boundary of the channel last week, it started to move upwards. However, as stated, the RBA brought back the declines to the pair, which is now traded above the support of the 200 SMA. A break-down of the support might take the Aussie under 1.03 again.
The Aussie resumed weakening against the Euro as well, after couple of days in which it corrected against the Eorpean currency. Yesterday it looked like the Aussie was about to start a significant correction but the change in the momentum of the Aussie versus the USD supported the EUR against the Aussie. The recent correction of the pair EUR/AUD reached approximately 40% Fibonacci levels and the bullish reversal that occurred that might lift the pair to the 200 SMA, around 1.315.
