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Overnight the market produced the separation that has been threatened for a week, following two months of price action that has been locked in a range. We have stated for four weeks now that a big fundamental driver will be the instigator of currency moves, and will be what is required to get things set towards their longer-term valuation targets. That came on Tuesday via the Reserve Bank of Australia who reported that the economic region was unlikely to have felt the impact of the credit crisis, when all is said and dome, and when it all gets looked back upon.

Those comments were enough to send the aussie higher, and by default send the Usd lower against all of the major pairs. This suddenly became a regional valuation play, rather than currencies being valued against whatever movement was coming from global equity trade. We now have a regional bar that has been set that can be used, via Australia, to gauge forward growth and interest rate differentials from region to regional. All that will be required going forward is for economies to start to print GDP numbers so that the market can assess the value of growth. In one move, the RBA's comments may have broken the summer doldrums trading range.

The major pairs are at the outer ranges of the 4 hour chart channels, and still have some work to do to break hard through these price points. However, that job has been made easier by the fact that they will not be reliant upon just global equity trade to garner support from each day; suddenly the economic calendar becomes the main way to gauge forex values.

Global drivers are set in a short-dollar mode, they just need to pull back to support, re-group, and move back higher again. The trend looks to be well supported, the momentum however, needs to start to build.