The aussie climbed a further two cents yesterday as figures revealed rising employment in Australia, and as rising risk appetite supported strong demand for high yielding currencies. The Australian dollar continued to push higher as encouraging data from the labour market gave investors further cause to buy into Australian assets. The recent rate hike to 3.25% has increased the yield gap between the two currencies, and the recent downturn in unemployment has simply reinforced the sentiment that Australia is at the forefront of the global economic recovery, strengthening aussie demand.
Posts Tagged ‘Sentiment’
The aussie continues to trade strongly, supported by risk appetite in the market
Posted by admin on October 9th, 2009
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Weak equities undermined the aussie’s upward trend yesterday allowing the pound to post marginal gains
Posted by admin on October 8th, 2009
The pound rebounded nearly two cents from its intra-day low against the aussie, halting its sharp slide and posting marginal gains of 0.2%, to close the day up at 1.7912. The Australian dollar has rallied strongly over the past two days following the surprise rate hike, but the aussie pulled backed yesterday as risk sentiment in the market dissipated. The high-yielding currency backtracked as equities took a downward turn and as investors sought defensive positions ahead of important statements in the UK and EU today. Additionally, analysts noted that market players may have over-bought the aussie, realising that it was only one central bank to raise rates and that similar moves from other nations may still be some way off.
Sterling posted gains vs the single currency, with the market forecasting no change in MPC policy
Posted by admin on October 8th, 2009
Having hit a fresh six-month low against the single currency in early trading , the pound rebounded yesterday, to close up half a cent at 1.0864. Unexpectedly weak data in the UK manufacturing industry on Tuesday continued to weigh heavily on the pound, dragging sterling to a 6-month low of 1.0781. With little data out in either the UK, the eurozone, or the US yesterday, markets initially continued to take direction from Tuesday’s data, which supported sterling selling. The euro trimmed its gains though following the second quarter final GDP figure for the eurozone, which was revised downward from a contraction of 0.1% to 0.2%, dampening the broadly positive sentiment towards the currency.
Single currency pushed higher vs the dollar, which came under heavy selling pressure
Posted by admin on October 7th, 2009
The single currency made strong gains yesterday as the dollar came under pressure about its future status as the chief currency used in oil trades.The single currency broached two week highs as a report came through that Arab States were in secret discussion to find alternatives to using the dollar in oil trades. Major oil-producing countries have denied the report, but markets reacted strongly to the news, which has added fuel to arguments that the US currency’s global status is coming under pressure. Analysts noted that the dollar’s sharp fall was a good example of poor sentiment toward the US currency being vulnerable to speculative selling.
A strong kiwi dollar shrugged off weak data from the US to post gains against sterling on Friday
Posted by admin on October 5th, 2009
Sterling relinquished gains against the kiwi dollar on Friday, as concerns mounted over the strength of the global recovery, with the price closing the week at 2.2269. Following the release of worse-than-expected jobs data in the US, risk adverse investors bought into dollar and yen havens on Friday, weakening the higher-yielding, ‘risky’ assets. However, the kiwi rebounded strongly in afternoon trading, as investors turned bearish in their sentiment towards the US recovery. The weak employment data added to concerns that the US recovery is struggling to take hold, and, after an initially flurry of dollar buying, many investors opted against the relative ‘safety’ of US assets.
An easing of risk appetite weakened the euro yesterday, but it has rallied back over $1.46 so far today
Posted by admin on September 30th, 2009
The single currency hit a two-week low against the greenback yesterday as a rise in risk aversion strengthened demand for the haven currency.The dollar rose for a second day as evidence that economies have yet to shake off the worst effects of the global recession spurred demand for the safety of the U.S. currency. Russia’s central bank cut its main interest rate, signaling that things are not as positive as they appeared previously, and spurring demand for the dollar. The greenback also found support following a disappointing US consumer confidence survey, which cautioned investors in their risk appetite.
Aussie has advanced further vs sterling as talk of interest rate hikes is renewed
Posted by admin on September 29th, 2009
Sterling slid for the third consecutive day against the Australian currency yesterday as the pressure of recent events and statements continued to weigh heavily.The aussie pushed higher, gaining another 0.9%, as the pound failed to shrug off comments made last week that a weak currency was in keeping with the BoE’s policy. The aussie dollar was also supported from a rise in commodity prices, particularly gold, which rallied back above $1000 per ounce yesterday. Additionally, risk sentiment among investors returned as stocks in Europe and the US traded strongly, buoying demand for riskier assets.
Forex Weekly Trading Forecast – 09.28.09
Posted by admin on September 27th, 2009
US Dollar: Optimistic Economic Outlooks to Meet Hard Facts This Week Fundamental Outlook for US Dollar: Bullish- The Federal Reserve left rates unchanged, but signaled a more optimistic outlook- University of Michigan consumer confidence jumped to a 21-month high in September- US durable goods orders tumbled 2.4% in August, marking the steepest drop since JanuaryThe US dollar ended the past week marginally higher after the Federal Reserve issued a more optimistic outlook on the economy. In the coming week, though, there will be a variety of growth indicators on hand that may help to signal whether the US recession really ended in Q2.
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Forex Weekly Trading Forecast – 09.21.09
Posted by admin on September 20th, 2009
US Dollar Overdue for a Technical Bounce, But Fundamental Reversal…Fundamental Outlook for US Dollar: Neutral- Speculation for rate hikes deferred as fundamentals temper exuberant risk appetite- The steady charge in risk appetite keeps the dollar on the short side of carry interests- Sentiment can often run askew of fundamentals; but what do technicals say about the dollar?The dollar was able to relieve the pressure of suffering its worst trend on recent record by clawing out the first bullish close in eleven consecutive trading days; but that does not mean the burdened currency is necessarily primed for a true reversal.
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