Forex News & Currency Analysis

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 in forex online market,  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.

A potential upside down head and shoulders formation here if the rally continues, which it may if bonds are unable to find support through the end of the week. To the downside, a close below the 21-day moving average (in blue) is important for the downside view.