Dollar index:

On Friday, the dollar index has seen some good moves on the upside and has broken the 80 level with ease. This is a major breakout in the dollar index and most probably, this may sustain. So, now this 80 mark will act as a strong support and the dollar index will find difficulties in coming back to those levels.

Last week, major events happened in the United States and this had a strong impact on the dollar index as well as other currencies. This improvement in the dollar index is quite encouraging and that is gaining ace in the near term. The only thing that market is unable to digest is the fiscal cliff and its worries.

The comments made in Fiscal cliff have been bad and there were some bad moves seen in the United States markets. But, the only thing that the markets are seeing is the Federal Reserve’s meet in this week and if that turns out to be positive for the markets, then the dollar index will fall and the situation will become worse.

But, if the United States markets will fall, then there will be a positive momentum on the up side for the dollar index. The dollar index has found quite a strong support at the 80 mark and will, for sure, act as a strong support for the markets in the near term and the long term. The dollar index was trading at 80.345, flat from yesterday’s close, last time we checked.

The dollar index will focus on the Federal Reserve in the latter half of this week and that will make the dollar index to move higher. This important support level of 80 is being held and that’s a good sign.

Australian dollar:

Australian dollar is trading flat and this index has been trading flat in the past 2-3 days. The major thing that this dollar is looking for is the Federal Reserve’s meet in this week. This is the main thing in this week and is make or break situation for this dollar. RBC currency strategist, Sue Trinh said, The accompanying statement was hawkish, with the RBA dropping the phrase ‘for the time being,’ and there was also no reference to ‘further easing may be appropriate in the period ahead,’ which was in the November minutes.”

So, maybe Reserve bank of Australia has much to do with the Australian dollar and this will decide the fate of it. The Australian markets have done well in the past week and they are up by around 0.5 percent in today’s trade, last time, we checked.

Ray Attrill, National Australia Bank co-head of foreign exchange strategy, said, “We hit our lows shortly after those numbers were released. So we got quite a knee-jerk reaction.” The Chinese data was not too encouraging and that, too, made the Asian markets to fall. All together, all the global markets are in a choppy session and that has made the Australian dollar to remain sideways.

Grab you free Interview with a trader who turned $5000 into 3 million in just 5 years – http://www.tradingandinvesting4u.com/ Watch in live as I show you a AWESOME tip on how to read the stock market – http://www.youtube.com/watch?v=_gSjHkxlhXQ

Grab you free Interview with a trader who turned $5000 into 3 million in just 5 years – http://www.tradingandinvesting4u.com/ Watch in live as I show you a AWESOME tip on how to read the stock market – http://www.youtube.com/watch?v=_gSjHkxlhXQ

Author Bio: Grab you free Interview with a trader who turned $5000 into 3 million in just 5 years – http://www.tradingandinvesting4u.com/ Watch in live as I show you a AWESOME tip on how to read the stock market – http://www.youtube.com/watch?v=_gSjHkxlhXQ

Category: Finances
Keywords: Dollar, Consolidating, Support