Aussie From Going And Testing

Fundamental Analysis EUR "Fears of a Greek exit from the euro zone and the negative consequences from that are prevailing" - Ben Kwong, KGI Asia European stocks edged lower after Fitch downgraded Greece’s credit rating to ‘CCC’, implying that the country is vulnerable and highly dependent on favourable economic conditions to fulfill its financial obligations. USD "If there were scope to do another twist of some type it would be prudent to consider it, especially in the scenario where things are worse and the Fed feels like it needs to move" - Nathan Sheets, Citigroup Inc. Fed policymakers might potentially launch another round of Operation Twist rather than a direct asset purchases in case of increased risks or further weakening of the US economy. GBP "We must work together to give ...

The Week Ahead Highlights Searching for the next crisis? What's driving the dollar? Europe: what happened to the LTRO? Searching for the next crisis A couple of weeks ago the market was able to shrug off the prospect of a Greek default and a sharply rising oil price. Even weak Chinese economic data didn't de-rail risky assets. However, that optimism didn't last long and last week investors removed the rose-tinted spectacles and started to worry once more about the outlook for the global economy. Last month China's growth rate was downgraded to 7.5% per year from 8%. Since China has a history of out-performing expectations this downgrade had little market impact. However, a fifth straight decline for the HSBC/ Markit manufacturing PMI survey reading and the markets are ...

The Week Ahead Highlights What now for the euro? To hike or to cut? A global central banker's dilemma Why the rise in oil prices should grab our attention What now for the euro? The debt deal agreed by Greece and its private sector bond holders to wipe EUR 100 billion from its enormous debt pile was an historic move: the largest sovereign debt restructuring in history. This is the latest piece of the jigsaw to try and solve the sovereign debt crisis, but the market's response suggests that the saga does not end here. Not only did Fitch place Greece into selective default after Collective Action Clauses or CACs were introduced to force reluctant bond holders to accept losses, but as Europe closed on Friday night expectations were growing that Credit Default Swaps on Greek ...

(Reuters) - The euro struggled to make any headway in Asia on Wednesday, having retreated from near two-week highs as optimism over the long-awaited Greek bailout deal quickly gave way to concerns about economic growth and implementation risks. Traders said the Asian session will be directed by HSBC's flash manufacturing activity report on China. Any disappointment could weigh on risk appetite, although it could also bolster expectations of more stimulus from Chinese authorities. The euro stood at $1.3235, down from Tuesday's high of $1.3293. It is seen capped at $1.3306, the 100-day moving average, and at last week's peak of $1.3321. While Greece's aid package helped ease fears of an immediate default, the country's economic outlook remained anything but rosy, a problem that could yet ...

(Reuters) - Greek resistance to the strict conditions attached to a bailout fund on Tuesday sapped recent momentum in markets spurred by hopes the global economy is improving, and the euro fell on renewed fears of a messy debt default. The Australian dollar leapt to a six-month high but stocks turned negative after the central bank held rates steady at a review when markets had positioned for a rate cut. Opinions were divided over whether the wrangling over Greece's debt restructuring talks would eventually be resolved or trigger contagion across other vulnerable euro zone countries, tempering risk-taking investments. MSCI's broadest index of Asia-Pacific shares outside Japan rose as much as 0.4 percent to its highest since September 1, then reversed direction, and last stood barely ...

Yesterday Big Ben Bernanke took the stand to talk about the economy… I sat here in amazement with his disconnection to the goings-on in the economy… He still believes the economy will be stronger in the second half of the year… Of course, one only has to question that if he really believes that, then why did the Fed Heads implement Twist & Shout? If the economy is on the verge of taking off to the moon, why did he need to cut interest rates 0.5%, which is what, in his own words, Twist & Shout is worth… 0.5% rate cut… However, Big Ben Bernanke did do a little “telling it like it is” when he told lawmakers that the US economy is “close to faltering”…and he must have scared the dollar bulls back into the woodwork, because after he talked, the currencies rallied back against the dollar. It ...

(Reuters) - The euro fell against the dollar and the Swiss franc on Thursday, and could extend losses if fresh evidence emerges that manufacturing output in the United States shrank after euro zone data showed the sector contracting, disappointing some investors. The yen stayed under pressure on dollar buying by Japanese accounts, lifting the U.S. currency to around 77 yen and soothing jitters that another round of intervention by Tokyo authorities may be on the way. The Swiss franc climbed against the euro and the dollar, extending spectacular gains made on Wednesday with investors testing the resolve of the Swiss National Bank, which has so far kept away from intervening. The euro was down 0.7 percent at $1.4272, with losses accelerating after it triggered stops on the break of $1. ...

The value of the US dollar (USD) was seen trading lower during a day of risk aversion--- which traditionally results in a stronger dollar. The surprise turn of events is tied with the failure of Congress and the White House to strike a deal over lifting its debt ceiling; an event whose deadline will be met early next week. Economic News USD - USD in Decline as Debt Talks Heighten Fear The US dollar (USD) was seen decreasing yesterday as traders began to seek shelter following speculation that debt limit talks in the US may falter. The value of safe-haven assets like the Swiss franc (CHF) and Japanese yen (JPY) have been buoyed by a shift away from higher yielding assets, though the dollar has been skipped this time around due to the domestic nature of this risk aversion. The news so ...

The Week Ahead Highlights Weak US jobs data may reverse bounce in risk Debt concerns drill down to Europe's core PBoC hikes rate but not yet finished as inflation remains elevated Important technical levels to watch in the week ahead Key data and events to watch next week Weak US jobs data may reverse bounce in risk 'Extremely disappointing' is about the only way to characterize US June employment data. After a classic ADP-induced shift to more positive expectations on Thursday, Friday's June NFP data showed an increase of only +18K (exp. +105K) and private payrolls a gain of just +57K (exp. +132K). Worse still, the prior two months NFP were revised lower by a total of -44K, average hourly earnings were flat (exp. +0.2% MoM), weekly hours fell 0.1, and the ...