Yesterday saw a sharp increase in the EUR/USD pair, which managed to rise to 1.32. This was despite factors that would have led to an opposite trend, such as the positive US housing data and the increased pessimism in the German economy.

The pair has since entered correction as expected, dropping to the 1.3010 level later in the day yesterday. It is currently in recovery, up to around 1.3035. The rise was partially fueled by the news of North Korea’s plans to resume talks with the US, but not without a list of demands such as the cessation of military drills in the region.


Meanwhile, the USD/JPY had a good start today, continuing its positive performance on Wednesday.

The pair has begun its recovery from the previous days' lows, opening today at 98.10. It dropped, however, to the 97.7 mark, before reaching a high of 98.3. It has since dropped again over the past couple of hours and is currently at the 97.7 level.


The AUD/USD pair, on the other hand is currently on the rise. From closing at around 1.030, it dropped to the 1.027 mark just an hour before China's announcement of its foreign direct investment (FDI) figures. The Chinese government then announced a positive growth of 1.44% in its FDI for March compared to the previous -1.35%. While this was below the 1.90% consensus, the number was enough to fuel the AUD/USD, which now currently hovers around 1.0315.

The FDI refers to the total investment made by various entities in a particular country. A rise in the FDI figures means that the country's economy is growing. Since Australia's economy is closely connected with that of China, positive news about the Chinese economy is often enough to fuel a rise in the value of the currency of both countries.

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By FX Strategy Team, Published on 18th of April 2013
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