Daily FNArena News - Currencies

John Kicklighter, Currency Strategist at FXCM, argues it is difficult to see the USD putting in a genuine rally without a general retreat in risk aversion worldwide.

Market analysts at FXCM suggest the technical target for the Australian dollar at present is 1.04 against the US dollar.

Current US dollar weakness is similar to trends in 1995 and while the rationale for the weakness has been justified, ANZ cautions against assuming it will continue.

Market analysts at FXCM see strong evidence suggesting the US dollar trend is reversing and a major low is forming.

Market analysts at FXCM note the Australian dollar has traced out a bearish engulfing pattern on the weekly chart, which suggests further weakness in coming days.

Market analysts at FXCM suggest while fundamentals are becoming more supportive of the US dollar there are enough concerns to hesitate labelling recent gains as a true reversal in sentiment.

National Australia Bank sees scope for continued short-term Australian dollar strength against the greenback and lifts forecasts accordingly.

St George Bank economists believe AUD/USD can hit 1.15 in the near term.

Economists are at odds as to whether a stronger Aussie dollar is here to stay.

Market analysts at FXCM warn the USD might be poised for a corrective rally, though the underlying trend remains down, down, down.