Daily Forex Analysis by Finexo.com 06/11/2009

The Australian Dollar rose modestly on Thursday after Reserve Bank of Australia (RBA) Governor Glenn Stevens, the head of Australia’s central bank, said the country was on headed towards recovery and that spare capacity in the economy would only last a “little while”, highlighting the need to boost supply. Earlier this week the RBA raised its key interest rate by 25 basis points to 3.5 percent, the second hike in two months, saying it was being cautious to wind back stimulus given the surprising strength of the economy.
At 5:00AM GMT, the Australian Dollar was up .35% to the US Dollar to .9134, up .38% to the Euro to 1.6279, up .22% to the Japanese Yen to 82.75, up .33& to the Canadian Dollar to .9724 and up .23% to the New Zealand Dollar to 1.2644.
Chart: USD/CAD

The USD/CAD looks interesting over the next couple of days. We have so far seen a basic retracement, with yesterday’s close very near the 0.382 Fibonacci of the latest rally to 1.0870. Today’s Ivey PMI and tomorrow’s combination of both the Canadian and US employment data for October are likely to tell us whether the lows are in for now, or whether we could see a test toward the lower 0.618 Fibonacci in the 1.0460 area in the event of a further rally in risk appetite and a weaker USD. The sequence that put USDCAD back above 1.0590 after a try down to 1.0200 suggests that we should be looking for confirmation soon that a structural low (1.0200) is in place.


Written by Finexo.com