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11 Feb 2013
Forex Flash: AUD amongst technically strongest currencies – BBH
Global Head of Currency Strategy at Brown Brothers Harriman, Marc Chandler notes that like GBP, AUD posted strong gains ahead of the weekend and from a technical point of view, the Australian dollar looks to among the strongest of the currencies.
He notes that against USD, it staged an impressive reversal on Friday having fallen to new lows for the move. It then rallied above the previous days high and to confirm the recovery, Chandler feels that the Aussie needs to overcome nearby resistance in the $1.0360-80 area, which in turn would project toward $1.0460.
He writes, “The Aussie had fallen to its lowest level against the New Zealand dollar since H2 2010 early last week, but reversed at midweek. The key level to monitor on the upside is NZD1.24. A move above there would confirm a low of some import is in place and would suggest initial recovery gains toward NZD1.25.”
He finishes by noting that the Australian dollar's recovery against the Canadian dollar is generating even more positive technical signals. Since Jan 24, the Aussie lost almost 3% against the Canadian dollar, but the key reversal before the weekend was impressive. Initially, he look for a move toward CAD1.0430-50 and then possibly CAD1.0550.
He notes that against USD, it staged an impressive reversal on Friday having fallen to new lows for the move. It then rallied above the previous days high and to confirm the recovery, Chandler feels that the Aussie needs to overcome nearby resistance in the $1.0360-80 area, which in turn would project toward $1.0460.
He writes, “The Aussie had fallen to its lowest level against the New Zealand dollar since H2 2010 early last week, but reversed at midweek. The key level to monitor on the upside is NZD1.24. A move above there would confirm a low of some import is in place and would suggest initial recovery gains toward NZD1.25.”
He finishes by noting that the Australian dollar's recovery against the Canadian dollar is generating even more positive technical signals. Since Jan 24, the Aussie lost almost 3% against the Canadian dollar, but the key reversal before the weekend was impressive. Initially, he look for a move toward CAD1.0430-50 and then possibly CAD1.0550.