AUD is getting stronger against the leading currencies due to the positive indices shown by the Australian economy and in spite of the interest rate being left as is at 4.50%. Recently the Home Loans Index was released showing a 1.7% increase (beyond analysts’ predictions of 1.1%). This index is n*sync with other indicators released by the South Continent, and all of them together supported AUD. Now the pair stands at USD short-term resistance of 0.9175 against USD. If this level is broken, the pair might reach USD’s next resistance at 0.9370. If this trend reverses, the pair might reach AUD’s nearest support at 0.8070.

EUR/AUD – 1.0520

For the first time since 1990, EUR drops to the 20-year (!) low against AUD – below AUD 1.39. This situation is brought about poor German performance where Factory orders decreased by 2.2%. The EUR/AUD pair stands at 1.3860 continuing the downtrend started in mid-July when the pair had stood at (the record) EUR’s resistance of 1.4970.