The aussie made a bit of a comeback through the first few hours of the U.S. trading day, and has recently broken through to fresh new weekly highs, albeit barely. After a staggering drop from March 11 to March 16, and then an almost equally staggering recovery from March 16 to the 22nd, traders have taken the last couple days as a time to pause and assess all of the factors influencing the markets.
From a technical perspective, a near-term band of resistance running between 1.0160 and 1.0200 could keep any further upward movement in check as it has through most of this year. If the tragic situation in Japan does starts to move from destruction and nuclear crisis and into a rebuilding story, there could be a lot more upside for an Australian currency that already enjoys strong interest rate support, particularly against the USD.
And yes, while the 1.0160 to 1.0200 level has been strong so far, technical levels, like rules, were meant to be broken. On the support side, traders may want to watch the zone between 1.0060 and 1.0080 for potential support before this pair would try to test parity on any bearish moves.(DANCOOK/Forbes)