ONE of the FX pairs hit the hardest from dollar strength and the commodities sell-off over the past week has been the Australian dollar-dollar pair. The Aussie tumbled over 6.5 per cent to lows of $0.9623 last week, but since then has recovered steadily as the US dollar rally takes a breather. It may struggle to retake parity though, especially if the US dollar starts rallying again. Look to sell Australian dollar-dollar as it approaches $1.000. Spread Co quotes $0.99620-$0.99640.
Sterling has had the upper hand against the euro in recent days taking sterling-euro back above the €1.1500 level. However, if history is anything to go by, the pair may not last long there as it has often fallen back. Capital Spreads quotes €1.1500-€1.1503 on sterling-euro.
With the yen’s ongoing status as a safe haven currency, it’s perhaps no surprise that the euro remains under pressure even if the sun has started to rise from the darkest days at the start of the week. We have this seam of confidence edging into the market suggesting that Europe can avert a credit crisis and the pair has found support around the ¥102 level, but risks remain. Off message comments from a central banker are more evidence that it’s all words and no actions, which is going to have the potential to open up an attack on the big ¥100 level. IG Index quotes euro-yen at ¥103.25-¥103.27.
Spread betters were selling the euro again yesterday amid fresh concerns that policy makers were dawdling in their attempts to react to the debt crisis. Euro-dollar has been trading largely in a range between $1.340 and $1.355 in the past week and traders were anticipating another fall to the $1.34 level and possibly beyond. Spreadex quotes $1.3514-$1.3516.