China'S Stance Supports Euro &Nbsp, &Nbsp, Australian Dollar And Shocking Calm Market.

With the advent of Christmas, the overall market climate is neutral and the US dollar maintains a narrow pattern of consolidation.

China reaffirms its support for low Euro stabilization

In the first two weeks, the focus of the market has not been very clear. But with the continuous improvement of the US economy, the European debt crisis has finally become the real focus of the foreign exchange market.

This week, ratings agencies Moodie and Fitch put Portugal's and Greece's sovereign debt rating on the list of possible downgrades, which further stimulated the market's concern about the possible spread of the European debt crisis.

The cost of French debt default insurance is rising, causing speculation that France may be downgraded.

In the long run, the further spread of the euro zone debt crisis has added new evidence to the continued blow to the already empty Euro sentiment.

At this time, China's stance is worth pondering, and the euro has gained short-term upward momentum.

A spokesman for China's Ministry of Foreign Affairs said that China supports the package of measures taken by the European Union and the International Monetary Fund to stabilize the market and is willing to help the euro area countries to restore their healthy development. The euro zone countries are one of the main investment areas of China's foreign exchange reserves.

At present, people in the pre holiday market have not been able to expand.

Bank of China's foreign exchange traders pointed out that excluding the post holiday market as the theme of speculation the euro rebound, from a technical perspective, the euro against the U.S. dollar has a short-term upward trend, the target area 1.33-1.34.

Economic recovery confirms that the US dollar still has room for growth.

On the eve of Christmas, the dollar maintained a narrow pattern of consolidation since the beginning of this week.

However, according to a series of recent economic data released by the United States, we should be able to determine the sustained recovery of the US economy.

The overall economic development has laid the foundation for tightening policy as soon as possible, which is regarded as the kinetic energy of the US dollar's long term rise.

The US consumer confidence index has been rising for three consecutive months, consumer spending has risen for five consecutive months, and durable goods orders rose 2.4% in November, the biggest gain since March.

These data helped consolidate the market's strong view of the fourth quarter's strong economic growth.

"While the US employment data may be noisy from time to time, the overall picture of the US economy is good.

As for the second round of quantitative easing and the extension of the US government's tax cut policy, the Federal Reserve is only trying to revive the economy with double insurance.

Bank of communications analysts estimate that the US will tighten its policy earlier than Europe and Japan.

This will provide a long-term upward momentum for the US dollar.

From the technical chart, the US dollar index has gained a rebound after gaining support near 79, and the resistance above it is located near 81.75.

Traders expect the dollar index to rise further.

Europe's debt crisis

Some major markets such as the US and Europe will be closed or partially closed, and the market is expected to become more quiet.

Although the European debt problem has deteriorated frequently, the Australian dollar has not been affected too much by the euro zone.

Since the beginning of this week, the price of commodities has been high, and international crude oil prices have gone up to a new high for two years. On the other hand, Australia's economic fundamentals have been performing well, the employment situation has been strong, and the economy has continued to grow.

Against this background, investors in the middle and long term have seen many Australian dollars.

In terms of technical figures, the foreign exchange traders of the Bank of China have reopened the rally, and the Australian dollar against the US dollar will hit the previous high of 1.01 in early November.

It is suggested that investors should buy Australian dollar at a low price, with a target rate of 1.02.