Varengold Bank

Markets review
On Wednesday the EUR jumps by 1,3% against the USD to 1,5830 as ECB’s Trichet said euro zone rates are at right level. That speech stopped expectations of a near-term ECB rate cut. Together with an unexpected improvement in business confidence in Germany and France, his comments prompted investors to focus on the widening yield advantage in the EUR over the USD. Additionally charges a series of weak US economic data and expectations for a big Federal Reserve rate cut the greenback. Some analysts expect that the mix of weak US and strong euro zone economic data should soon push the pair back to record high at 1,5905 and beyond.

USD/JPY fell down 0,5% during the day at 98,56. Rumours in the market say that a big Japanese institutional investor sold USD for a second straight day. Some traders speculate the USD selling could be tied to repatriation flows before Japan’s fiscal year ends on Monday.

The way the RBA see it means the Australian resilient baking system and relatively favourable economic outlook that the country is much better placed to deal with global market turmoil than many others. The AUD/USD raised 0,21% and closed the trading session at 0,9200.

Technical analysis
USD/JPY
The old support at 101,21 of the USD/JPY from the beginning of march develops to a resistance level. This effect is observed also on other Instruments. But on long term view the USD/JPY looks rising.

EUR/AUD
The EUR/AUD trades since the end of February in an upward trend. It has reached a very high level so the trend could break and turn downward. When the EUR/USD converge the 1,60 mark, this could accelerate the motion.