Allow The Price To Pursuit

(Reuters) - Inside a dimly lit barn in northeast Indiana, where the air smells faintly of corn and earth, the future of China's food supply is squealing for attention. A farmhand shuffles through the crowd of pigs inside pen 7E3, patting their fleshy pink backs and checking their water trough. The animals here at the Whiteshire Hamroc farm have been bred for one purpose: to be flown halfway around the world, on a journey fueled by China's appetite for food independence In a country where pork is a culinary staple, the demand for a protein-rich diet is growing faster than Chinese farmers can keep up. While Americans cut back on meat consumption to the lowest levels seen in two decades, the Chinese now eat nearly 10 percent more meat than they did five years ago. China's solution: to ...

(Reuters) - The Federal Reserve should start raising interest rates next year, a top Fed official said on Monday, arguing that even if rates stay near zero for many years, U.S. economic output will not bounce back to pre-recession levels. Last month the Fed said it was likely to keep interest rates exceptionally low through late 2014 to bolster a recovery that was moving too slowly. St. Louis Fed President James Bullard said he disagreed with that decision, arguing that the housing collapse means unemployment is likely to stay high and labor markets will improve only slowly even if rates are kept low for many years. Bullard, who does not have a vote on the Fed's policy-setting Federal Open Market Committee this year, is seen as a policy centrist. "It's important to start to remove ...

The pair AUD/USD continues to move into its bullish channel (purple lines). The pair is going to test the lower band. Resistance 2 : 1.15 Resistance 1 : 1.10 Key point ; 1.05 Support 1 : 1.00 Support 2 : 0.95 On the long term: The trend is clearly bullish into the bullish channel In case of return below 0.95, the long term trend will become bearish. On the short term: The pair is moving below its key level at 1.05. As far as this level is resistance, the trend will remain bearish The breakout of 1.00 will allow the price to pursuit its bearish movement towards 0.95. In case of return above 1.05, the trend will become bullish. Previous AUD/USD Daily Analysis - November 2011

The pair AUD/USD continues to move into its bullish channel (purple lines). Resistance 2 : 1.15 Resistance 1 : 1.10 Key point ; 1.05 Support 1 : 1.00 Support 2 : 0.95 On the long term: The trend is clearly bullish into the bullish channel In case of return below 0.95, the long term trend will become bearish. On the short term: The pair is moving below its key level at 1.05. As far as this level is resistance, the trend will remain bearish The breakout of 1.00 will allow the price to pursuit its bearish movement towards 0.95. In case of return above 1.05, the trend will become bullish. Previous AUD/USD Daily Analysis - October 2011

FUNDAMENTAL OUTLOOK at 0800 GMT (EDT +0400) USD Risk sentiment was mixed in Asia after Standard & Poor’s downgraded Spain and US stock markets closed lower. S&P downgraded Spain to AA- from AA and kept a negative outlook, citing high unemployment, tightening credit and high private-sector debt as the main reasons. As S&P’s decision only matched Fitch’s move to downgrade Spain and as there is no indication of a similar short-term move on Italy, the impact on the euro was muted. Given still subdued investor sentiment and hence extreme short positioning in pairs such as EURUSD and AUDUSD, any downside remains corrective, especially with scope for additional positive surprises and hence more position squaring over the coming weeks. Apart from the EU summit later this month, investors will ...

Forex News and Events: The second reading of US Q1 GDP was somewhat disappointing; consensus estimates were looking for upward revisions to 2.2% QoQ annualized, but instead the figure remained at the originally reported level of 1.8%. Softer growth in real consumption appears to have been the main reason this reading fell short of expectations, but overall the results confirmed a soft start to 2011 growth which predictably led to a rally in US fixed income and widespread USD weakness. In turn we have seen USDCHF collapse to new all time lows of 0.8533 and EURCHF hit a record low of 1.2166. This latest move will only compound problems for the SNB, who have already been vocal in their disapproval at prevailing CHF strength. Currency appreciation acts as a form of monetary tightening, and ...

When Chinese President Hu Jintao visited the White House Wednesday, President Obama made sure to raise the contentious issue of currency values and press the Chinese leader to allow the renminbi to rise against the dollar. Not least among the reasons given was China’s $226 billion trade surplus with the US. The problem: The Obama administration’s weak dollar policy is based on official trade data that grossly misrepresent the bilateral trade balance between two countries. According to the World Trade Organization (WTO), the actual US trade deficit with China is less than half the official number, or less than $115 billion. The official trade data are based on a 19th-century world in which it was reasonable to assume that goods, from wine to machinery, were produced in a single country. ...

It is part religion, part politics. It is a way to voice a lack of confidence in individual freedom, property rights, and free market capitalism. It comes from a yearning for a new socialistic, centrally controlled world that happens to favor the elite who control large financial institutions and corporations, and who also exert powerful influence over politicians of both major political parties. It requires the rubbing out of history when the Constitution limited government power and defined what the U.S. dollar is: a certain weight of silver (and later gold). It is not an investment; it is something that consistently loses purchasing power. It has been created incessantly whenever debt expanded. This elasticity and continual debasement made the use of debt so attractive that nearly ...

(Reuters) - Federal Reserve Chairman Ben Bernanke hit back on Friday at critics of the U.S. central bank's bond-buying program and issued a thinly veiled attack on China's policy of keeping its currency on a leash. Bernanke, facing a chorus of protests about the asset-buying spree from within and outside the central bank, said a more vigorous U.S. economy was essential to fuel the global recovery and dismissed charges he was debasing the dollar. "The best way to continue to deliver the strong economic fundamentals that underpin the value of the dollar, as well as to support the global recovery, is through policies that lead to a resumption of robust growth in a context of price stability in the United States," Bernanke said in a speech to a conference at the European Central Bank in ...