The Canadian dollar is still well-supported by the release of the Canadian capacity utilization of the first quarter of this year which surged to 79% from 76.8% in the last quarter of 2010 and this figure came after Ivey PMI of May which rose significantly to 69.1 from 57.7 while the median forecast was referring to 60 to show strong improving of the Canadian industrial performance which can lead BOC to hike the interest rate specially after the declining of the Canadian unemployment rate to 7.4% in May from 7.6% in April and after the rising of April Canadian raw materials prices index by 6.8% yearly from 5.8% which can add more weights on BOC to start hiking the interest rate again after keeping it unchanged at 1% since 8th September 2010 to be the second following ECB which hiked it by .25% in April and has signaled earlier this month for another tightening action to come next July while the Fed is still in unable to take such tightening action as the US economy is setting back showing slow down signs.

The single currency is still under pressure on the markets worries about the Greek debt outlook and its negative impact on the other debt ailing European countries with the current obvious difference between Germany and the ECB on the way of sharing the private sector in the risk of holding its debt and this negative market sentiment could drag the single currency down despite the ECB hinting of a close interest rate hike to come in introductory statement to the press conference by saying that risks to the outlook for price stability are on the upside and Accordingly, strong vigilance is warranted from saying after May meeting that the ECB is very closely watching the prices which always hints to the markets that there is no close rate hike decision and that what has been seen in June meeting when the ECB held the interest rate unchanged at 1.25% last Thursday.

The single currency is still getting use of the interest rate outlook differential versus the greenback which has been hit by rising of May unemployment rate to 9.1% from 8.9% in April and also adding just 54k to the US non-farm payroll while the market was waiting for adding 190k and also the figure of April has been revised down to 332k from 241k to maintain the slowing of the US labor market after the release of US ADP unemployment index which has shown rising by just 38k from 175k in April while the market was waiting for adding 175k and these weak figures can delay taking  any tightening action by the Fed ...

The Aussi has come under pressure again by disappointing employment change in April by -22.1k from 37.8k in March while the market was waiting for rising by 17.4k. The Aussi has been exposed to a strong correction since the release of April Australian commodities prices which have fallen yearly to 32.3% from 42.2% in March and also following the weak release of April Australian retail sales which came down in April by .5% after rising in March by .5% while the market was waiting for .6% to put another pressure on it accompanied with falling of commodities prices and Now, The Aussi can meet resistance at 1.0887, 1.0931 then 1.101 again, in the case of rising back again as it has actually broken the trend line support extended from .9704 to 1.0441 earlier and after reaching 1.0535, it has formed a lower high below this trend line support at 1.0887 and if it is to come down further should meet 1.0535 and in the case of breaking it this time it can face another supporting level at 1.0441