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Forex Commentary: AUDUSD moves above parity, 14th December 2010

Forex Commentary:

The U.S. dollar was largely unchanged today, the dollar index closed up today only about 0.15% after a late day sell-off in stocks and commodities worked to pick the green back up from its earlier session losses.

The Federal Reserve left its key interest rate and the size of its bond-purchase program unchanged today, this was widely expected.

Trading Setups / Chart in Focus:


The AUDUSD appears to be gaining steam to the upside, we can see the 8 and 21 daily emas have recently crossed higher, and today the pair broke through and closed above resistance near 0.9950 and briefly pushed above 1.0000. The pair closed around 0.9989, 11 pips shy of parity.

If price continues to push higher we will likely see a re-test of the all-time highs near 1.0180 in the near future. A pull-back to the 8 day ema support near 0.9900 could be a decent buying opportunity pending some solid 4hr or 1hr price action setups.


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Other Markets:

On Wall Street today the Dow gained ground but the S&P 500 and Nasdaq lost early session gains and closed the day mostly unchanged in a late-day sell off after yet another cautious statement from the Federal Reserve on the economy, this worked to offset strong November retail sales which supported the market most of the day.

The Dow added 48.74 points, or 0.43 percent, the S&P 500 added 1.12 points, or 0.09 percent, and the Nasdaq added 2.81 points, or 0.11 percent.

Upcoming important economic announcements: 12/15

4:30am EST: Britain – Claimant Count Change
8:30am EST: United States – Core CPI m/m
9:00am EST: United States – TIC Long-Term Purchases
9:00pm EST: New Zealand – NBNZ Business Confidence