Greece Approves Austerity Package | June 30, 2011

The AUDUSD is continuing to rally and has passed its 10 day high and is currently testing the 1.07 level

Asian stocks are pointing to a slightly higher open Thursday as US markets rose overnight in choppy conditions as the Greek parliament austerity package is approved and Bank of America reach an $8.5 billion settlement on investor claims over securities purchased before the U.S. housing-market collapse. The Dow rose 72 points to 12261 while the S&P500 rose 0.80% to 1307. These upward moves put the US indices on track for their biggest weekly gains since March.

The EURUSD broke through the two week highs of 1.4430 after trading as low as 1.4325 early in the US session as the Greek politicians ignore the widespread rioting and passed the bill that will keep the country from defaulting in the short term. All eyes are now focusing on the upcoming Sunday meeting of the Euro-zone finance ministers to plan the second bailout. German Chancellor Angela Merkel was quoted as saying that Greece’s approval of new austerity measures is an important step for the country and for the stability of the euro as a whole.

It has now rallied 310 pips in the last three days, the next level of resistance is around the 1.0740 level.

Gold and Silver both rose overnight being lifted by the weakening dollar. Gold is now back trading above its technical resistance level of $1,500.