Investors sell risk sensitive currencies - 21.12.2012
Australian, New Zealand and the Canadian dollars continued falling against the US currency on Friday. Australian dollar broke through the uptrend line and now it goes to 1.0400, while in the beginning of the week it was traded near the resistance at 1.0555. US dollar vs. Loonie rose above 0.9900 for the first time in two weeks (see the chart). Risk sensitive currencies got under pressure due to the protracted negotiations on the the” fiscal cliff” issue in the United States.
AUDUSD (from the left), USDCAD (from the right), daily charts
Yesterday, the Republican leader and House Speaker, John Boehner could not receive support from his party, to present the so-called "Plan B» (concerning tax increase for the richest society segments with incomes over $ 1 million) in the Congress. Barack Obama sharply criticizing the "Plan B” insists on raising income taxes on over 400 000 dollars a year.
Euro and British pound also got under pressure on Friday, although the dynamics for European currencies seems less negative. Euro vs. US dollar is currently traded at 1.32, after its Wednesday rising to 9-months high at 1.3307. The British pound has appreciated in value to 1.6305 on Wednesday, focusing on the key level of resistance, formed the important April and September highs (see chart). The British pound got stronger at 1.6305 on Wednesday, being focused on the key resistance level, formed by the important April and September highs (see the chart).
EURUSD (from the left), GBPUSD (from the right), daily charts