European sovereign debt concerns and Japanese cabinet shuffling
European sovereign debt concerns and Japanese cabinet shuffling encouraged risk aversion flows into the U.S. dollar but technical factors limited the USD upside.
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Better-than-expected U.S. GDP
The long-expected correction snagged on a reversal Thursday from the better-than-expected U.S. GDP print, which hit its own reversal Friday as risk aversion again entered markets. The S&P scored negative for the first time since February, USD and JPY gained ground, and the VIX volatility index gained 24%.
Australia 3Q2009 NAB business confidence surged to 16 [...]
USD continued to lose ground this forex trading week,
USD continued to lose ground this forex trading week, as cautious optimism sought risk and rewards, pushing select commodities and equities ever higher. Gold set another historic record at $1070.45, crude oil topped $77/bbl.
Australia’s September NAB business confidence fell slightly to 14, business conditions to 3, while October consumer confidence improved 1.7% m/m. October inflation [...]
Forex trading week turns jittery
A bullish forex trading week turns jittery, with gold nearing historic highs and the U.S. dollar striking 2009 lows against multiple currencies.
September RBA meeting minutes indicate a rate hike isn’t likely in October. 2Q2009 dwelling starts fell −3.7% q/q and the July Westpac-MI leading index growth rate slid to −1.8% annualised. AUD/USD pushed through previous [...]
USD as funding currency
Dealer chatter increasingly focuses on the possibility that USD has become the funding currency of choice for the carry trade, due to its emergence as the cheapest to borrow on the global block. The theory certainly explains the strong negative correlation between USD and risk acceptance, as well as the strong direct correlation between AUD/USD [...]
Range breaking . . . finally?
The long-awaited break may finally be shifting forex trading summer ranges. EUR/USD, AUD/USD, NZD/USD, XAU/USD, and USD/CHF all pushed through stubborn support and resistance levels as USD set new lows for the year; USD/CAD initiated an attempt but turned at support and reversed its run as the day’s only Canadian fundamental announcement, July building permits, [...]
The U.S. economy: green shoots or crabgrass?
U.S. Federal Reserve Chairman Ben Bernanke utilised the term “green shoots,” during a television news programme interview, to describe early symptoms of the U.S. recession easing on 15 March. That prognostication set off a global equities rally and sent business and consumer confidence surveys higher, albeit off record lows. But has the recession truly eased [...]
The forex trading market punishes USD over fiscal policy
Week ending 29 May 2009: The forex trading market punishes USD over fiscal policy, with surging commodities prices and bond yields adding further downward pressures.
The RBA meet Tuesday, 2 June and are expected to retain steady rates at 3.0%. March Westpac leading index rose 0.3% m/m, the Conference Board 0.4%, while May DEWR skilled vacancies [...]
