12/18/2008 – AUD/USD – With the recent U.S. Federal Reserve rate cut to a record low, the interest rate differential between AUD and USD has widened to a substantial 4.00%. As shown on the accompanying AUD/USD daily chart, this expanded differential has helped contribute to a significant rise in the exchange rate. After having broken out above a prolonged triangle consolidation (in magenta), which acted as a support base for the pair, price has gone on to break out tentatively above the key 0.7000 resistance level as well as an important downtrend resistance line (in red). This has fuelled speculation of a potential ... (full story)