In addition, gold created a new record in the New Year at 1139.50 due to the dollar's future was still groggy when the FED remained interest rates low in the most recent meeting.
Apart from low interest rates, gold is more attractive than other investment channels because of government’s debt and bank bankruptcy, the dollar must be under pressure.
The dollar reduced sharply after two reports from the U.S. Both reports were not good as market’s forecast but still better than previous: ADP Employment Change (Dec) with the lowest level since March 2008 (actual-84K,-74k in forecast, previous -145K). ISM Non-Manufacturing (Dec)  showed growth (actual: 50.1, forecast: 50.5, previous: 48.7), ISM> 50.0 is the signal for growth, whereas ISM <50.0 is the signal of recession. Two reports made investors sell the dollar and seek for other assets such as the stocks or the currencies with higher interest rates.
Support for gold’s momentum must say about raising crude oil prices. Oil prices exceeded $83/barrel - the highest level in over a year.
Therefore, AUD has continued to increase from yesterday afternoon from 0.9117 to 0.9250 this morning. This increase is considered quite strong. However, in the morning session, people can see the AUD to show downward trend because of earning profits from the investors.
Technical analysis shows that: RSI reaches 73 points, falls into the overbought area, so we will see the purchasing power declines in the 0.9220/0.9250 area. The amplitude decreased further to 0.9160/0.9210 area if the AUD breaks out technical level 0.9190 (bottom lowest in the morning). However, at 0.9178, investors can buy into the strategy.
The USD is likely to continue under pressure when the market forecast that the speech of the Fed’s Governor of the state of St. Louis James Bullard will be prompted to stay low interest rates in 2010 to stimulate the economy.
Therefore, the AUD is able to fly back in European session. The rate varies depending on the close price of the Asian session. The raise may be 30-50 points.
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