Weekly commentary , Feb 10-17 (as at 3pm NZ time, Feb 17)

	The Usd continued to show weakness as Alan Greenspan made it clear that the low US interest rate will be here to stay for a little while longer as the US tries to tackle their trade deficit problem. This made all high yielders more attractive, especially with both the Aud and Nzd just starting on their rounds of rate hikes last couple of months. Eur/Usd: The Eur has made a remarkable recovery from its lows nearer the 1.23 level, gaining to test the previous high of 1.2900 briefly before profit taking put paid to any further rallies. The Eur does look like testing higher grounds in the coming weeks, especially with the usd weakness still very apparent. Expected  range for next week: 1.2630-1.2980 Expected direction: up Usd/Jpy: This has been the most well behaved currency pair for the last few weeks and we think it will continue to be so as mkt players stay sidelined amidst fears of BOJ intervention closer to 105.00. Despite bearish Usd sentiment, dealers are reluctant to sell at current levels and prefer to wait for rallies created by any intervention to sell into. The strategy for this one seems obvious: be patient and sell after BOJ has intervened. Usd still looks weak in the coming weeks. Expected range next week: 104.50-106.00 Expected direction: range trade Gbp/Usd: The Gbp continued on its way north as it built on its gains last week to test a high close to 1.90 before easing off on profit taking.  The Gbp looks set to breach 1.90 again in the coming weeks as the recent healthy retracement back to 1.81 levels has meant recent longs are all from fresh buying n not stale longs. Expected range next week: 1.8830-1.9150 Expected direction: up Aud/Usd: The Aud continues to test new highs as the week wore on  with the knowledge that US interest rates will remain low for the rest of the year.  Expect this one to continue strengthening amidst a backdrop of Usd bearish sentiment and a higher interest rate differential. Expected range next week: 0.7860-0.8075 Expected direction: upward bias Nzd/Usd: The Nzd has raced ahead of the Aud this week, testing the 0.8950 level this week. Against the Usd, it has broken the much awaited 0.70 this week and looks set to try the multi year high of 0.7160 soon as there is no sign of this Nzd climb abating. The Nzd’s attractiveness as a high yielder is obvious as both the Aud and Nzd has galloped away on their own. Expected range next week: 0.7020-0.7150 Expected direction: upward bias Usd/Cad: This one has been surprisingly ranging this week as market continues to look for clear signs for this one. Expect this one to continue easing off amidst a weak Usd scenario. Expected range next week: 1.3010-1.3230 Expected direction: downward bias WWW.KVBKUNLUN.COM