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Investica: Daily market analysis 05-01-06 - Commodity support for AUD. |
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Thursday, January 05, 2006 |
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The Australian dollar continued to find support from a combination of US currency weakness and high commodity prices with a push to highs of 0.7480 in New York on Wednesday before a correction. Copper prices reached a record level on Wednesday and gold prices also gained strongly which will encourage a further flow of funds into the local currency. Overall US dollar confidence will also remain weaker in the short term which will underpin the Australian dollar, but a further period of consolidation will be needed after the strong gains. There is likely to be short-term resistance close to 0.75, especially with the US payroll data on Friday.
January 2006
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