The dollar was mostly higher on Wednesday after Luxembourg's Finance Minister Jean-Claude Juncker signaled the weak dollar may harm global economic growth. The yen and Swiss franc fell on increased risk appetite as US equity prices rose. Sterling traded lower although the Bank of England minutes showed two BOE MPC members preferred no interest-rate cuts. The Canadian dollar fell as Canadian retail sales unexpectedly fell in February, increasing speculation of further Bank of Canada aggressive rate cuts following yesterday's 50 basis-point cut to 3.0%.
The AUD/USD penetrated the triple-top resistance and touched the highest level since 1984 as Australia's consumer inflation rose to 4.2% y/y in Q1 2008 for the first time in seven years. The pair is supported by high Australian growth and interest rates. High commodity prices have also supported the pair but limited the aussie's gain as the CRB-index sold off sharply today. There are signs of topping commodity prices and slowing Australian growth. Therefore, we sell one unit of the AUD/USD with stop at 0.9635 although it may be risky.
