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Currency market review (weekly) after 2nd March, 2012.

Somewhere I was seeing that China is trying to diversify its foreign exchange reserves, so that is going to affect US dollar in coming days. I think if that news is true then they maybe giving some hints about EURO.

Currencies
2nd March, 2012
2/24/2011-3/02/2012 (%)
2/17/2011-2/24/2012 (%)




USD
79.403
1.28
-1.17
EURO/USD
1.319
-1.93
2.36
AUD/USD
1.076
0.65
-0.19
USD/JPY
81.55
1.07
1.67
USD/RUPEE
49.35
0.59
-0.3
Swiss FRANC
0.913
2.01
-2.51
S.African RAND
7.515
-0.91
-1.85
Brazilian REAL
1.73
1.17
-0.23
Mexican PESO
12.741
-1.22
0.87

US dollar is in 9 month high against YEN. Japanese YEN saw some selling because market is expecting more monetary easing because BoJ will try to meet its inflation target. On the other hand Brazilian government may also use different financial weapons to control its REAL from appreciating.

Better Chinese manufacturing data helped in the rise of AUD, but interest rate is still a matter for it. Most of the Asian currencies are advancing for a 3rd week, as such these countries are expecting more inflows for their assets.


Currency market forecast for coming week.

Let talk about the currencies in coming week.

I was expecting that AUD may test lower levels but it got good support at 1.06 level. It is good to see that it is still testing 1.08 resistance level. Coming week will be very important for AUD; technical indicators also say that it can go more in the upside. So stage is ready for AUD, now it will be interesting to see what it follows!

EURO (World Equity Market: EURO's forecast for coming week ... - blog*sp)


USD (World Equity Market: USD's forecast for coming week ... - blog*spot)


Last day I was talking that in spite in overbought condition Japanese YEN can test 82 level, but now indicators are saying that it is going in extreme stage. On the other hand macros do permit it, so I am not sure whether we are going to see 85 in coming days.
I was expecting a reversal from Swiss FRANC and I still have a feeling that it may test 0.92 level. Now if it follows the lower high and lower low pattern then later it may drop from that 0.92 level.
Looks like Brazilian REAL made a base at 1.70. I was expecting an up move but still it was less than my expectation. What I think that if it continues it’s up move then it will get resistance at 1.78. I am still positive about its long-term up move and I will change this opinion when it breaks 1.673.
South African RAND got the support around 7.45, last day’s bounce was better. Now if it continues its move then it has initial resistance at 7.6 and then at 7.8. In the downside if it breaks 7.40 then it can drop more.


[Currencies are given against US dollar unless specifically told. Rise and drop in currency (under heading currency forecast for coming week)  means rise & drop in chart figure, not currency’s rise & drop though sometimes it is same in meaning.]

NOTE :  Please see the disclaimer of this blog .

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