Euro/Usd: Key Resistance On Target

The world’s economy is slowly moving out the deep recession, but the recovery might be fragile and set-backs are possible along the way. The historical traction of the United States is missing yet, as the country faces a massive deleveraging in both the financial and household areas. The U.S. trade deficit increased to US 36.5 billion in September, more than the expected USD 32 billion. Imports and exports rose in the third quarter, admitting that the country has moved away from the bottom. Domestic demand should rise in the coming months, but not at the same pace seen during the credit era. As a result, the Federal Reserve will keep rates low for some more time. The jobless rate, now at 10.2%, is the main priority. Fed officials know there will be no real growth until credit will somehow begin to flow again. Spending and consumer confidence will remain subdued in this economic environment.

Aussie Dollar Rocketing on Rates Hike

The Australian dollar rose versus most of the 16 main traded currencies as interest rates were once again raised in the country, making the Aussie currency one of the most attractive investment in foreign-exchange markets this year.

A day of high risk appetite which several optimistic news coming from Dubai and China helped the Australian dollar to gain further after the Reserve Bank of Australian raised interested rates for the third time in a row, adding attractiveness to the already alluring Australian currency.

AUD/USD traded at 0.9242 as of 18:12 GMT from a previous rate of 0.9153.