Aud Australia’s Trade

Japan’s yen fell against major currencies with the beginning of the day, where investors are waiting this week’s BOJ’s meeting minutes which expected to contain another stimulus plans, which negatively on yen’s demand to feel against most of currencies. From another side, the significant incline of Japanese yen against American dollar during the past three weeks increased pressure on BOJ to raise its financial programs that aims to support companies and compensate the recent massive incline. USD/JPY pair inclined to record high of 79.24 during today’s Asian session, after recording low of 79.11 to be now at 79.04. Euro/JPY pair inclined also to the highest in two session recording high of 101.40 and low of 100.97. AUD/USD pair slightly inclined in a correction trend after the massive ...

Forex News and Events: The S&P GSCI Index reversed its 2011 gains in the last six consecutive trading sessions. As a matter of fact, the index tracking 24 commodities broke down 7.6% from a high of 684.15 on April 30th to a more than four-month low low of 634.25 during yesterday’s trade session. This downturn in commodity prices can be explained on the one hand by headlines from the Euro area, as markets seem to be pricing in a second round of elections in Greece as well as a probable EU exit. On the other hand, the marked slowdown of commodity-intensive economies such as China -see Newsletter May 14- pushed prices lower in light of atrophied demand and lower infrastructure investments. From the foreign exchange perspective, the Australian dollar having experienced a 34% appreciation ...

What’s new: Global Markets: Asian markets up after China cuts RRR China: People’s Bank of China cuts Required Reserve Ratios by 50 basis points Spain: More than €30 bln to clear real estate exposure from Spanish Banks Forex: AUD/USD hits a 5-month low at 0.9999 Forex: EUR/USD dips down to 4-month low at 1.2878 Forex rates in Asia and Indices: Low High Change EUR/USD 1.2879 1.2905 -0.20 % USD/CHF 0.9309 0.9326 -0.21 % GBP/USD 1.6054 1.6079 -0.03 % USD/JPY 79.89 80.13 -0.12 % EUR/CHF 1.2009 1.2014 -0.00 % EUR/JPY 102.99 103.37 0.08 % Dow Jones 12779.28 12918.01 -0.26 % Nasdaq 2604.99 2643.22 -0.00 % S&P 500 1348.89 1365.66 -0.33 % Nikkei 225 ...

The Australian dollar slipped, falling to the lowest level this year against its US peer, as negative macroeconomic data hurt prospects for Australia’s exports and general pessimistic sentiment on the Forex market reduced appeal of growth-related currencies. The National Bureau of Statistics reported that China’s consumer price index fell from 3.6 percent in March to 3.4 percent in April, being in line with forecasts. Industrial production, on the other hand, frustrated forecasters, falling from 11.9 percent to 9.3 percent, while an increase to 12.1 percent was predicted. Other fundamental reports, including retail sales, were also worse than expected. China is the main trading partner of Australia, therefore its fundamentals have a great impact on the Aussie. The FX market in general ...

Australia’s employment data made a pleasant surprise for those Forex traders that were bullish on the Australian dollar as employment unexpectedly grew and the unemployment rate fell. The number of employed persons in Australia rose by 15,500 in April from March, while analysts expected a drop by 4,800. The unemployment rate slipped from 5.2 percent to 4.9 percent, even though an increase to 5.3 percent was predicted. The Australian currency is still pressed by negative outlook for Europe and uncertain prospects for China, but the domestic data was simply too good and pushed the Aussie up, at least for now. AUD/USD rose from 1.0039 to 1.0113 and AUD/JPY climbed from 79.91 to 80.81 as of 15:26 GMT today.

Pessimism brought volatility in Asian on Thursday, where the Asian stocks swung between gains and losses while the MSCI Asia Pacific Index rose only 0.1% at 14:25 in Tokyo, after China’s slowing growth was confirmed by the trade balance data. Investors continue to limit their appetite for risk as cautious persist since doubts over the strength of the US recovery were combined with the complicating the outlook for Europe and the slower growth in China. Greece’s political deadlock is still a major concern for markets, as it puts the eurozone unity at risk, derail the austerity plans and could aggravate the region’s debt crisis especially after the political changes seen in France. The leader of Greek leftist party Syriza, Alexi Tspiras, failed again to form a government coalition, which ...

Attention was momentarily drawn away from Europe by employment data out of Australia and then trade figures out of China, with the former printing better than expected and the latter disappointing the market. Following the data, price action was fairly range bound in the FX market as investors await the slew of news and data out of the UK and US tonight. In Australia, data released early in the session showed that the unemployment rate dropped to 4.9% from 5.2% and employment increased by 15.5K, much better than the expected increase in the unemployment rate to 5.3% and a drop in employment of 5K. The participation rate also cooled at little, coming in at 65.2% versus a prior 65.4%. Overall, the employment data bodes well for the health of the Australian economy this year. We were ...

The Australian dollar dropped today, trading near this year’s lows, as a government report showed that the nation’s trade balance deficit in March was bigger than estimated by specialists. Australia’s trade balance registered a deficit of A$1.587 billion in March, compared to experts’ forecast of A$1.380 billion. The February shortage was revised from A$0.480 billion to A$0.754 billion. The poor data made traders afraid that Australia’s economic growth is losing steam. The Aussie, together with other growth-related currencies, suffers from the ever-growing concern about the future of Europe. Greek parties were unable to reach agreement and for a new government after the weekend’s election. The political turmoil added to worries that the most-indebted country of the European Union may ...

The Reserve Bank of Australia shocked markets with a 50bps rate cut this morning, the bank cut interet rate from 4.25% to 3.75% while markets were expecting an imminent cut of 25bps. Australia’s slowing economy and headache coming overseas from Europe in addition to the slowdown in its major trade partner China were the main reasons behind the aggressive move. Thus, we have seen the Australian and Newzealand dollar under pressure today. While most European markets were off for Labor day, the euro was well bid as the common currency bottomed at the support area and the 50-days SMA around 1.3220, to resume the bullish bias retesting areas near 1.3300 again, however 1.3300 seen the next important pivot for the pair over the short term. Above 1.3300 the door could be open towards March high ...