The Euro slipped to a low of 1.3797 during the overnight trade as Fitch Ratings lowered its sovereign debt rating for Ireland to A+ from AA-, and the single-currency may consolidate over the next 24 hours of trading as investors wait for the European Central Bank interest rate decision on Thursday. As the advance in the EUR/USD stalls ahead of 1.3890-1.3900, the 61.8% Fibonacci retracement from the 2009 high to the 2010 low, the single-currency may carve out a near-term top in the days ahead as the recent rally remains overbought. The ECB is widely expected to hold the benchmark interest rate at 1.00% this month, but investors will certainly turn their attention to the press conference with President Jean-Claude Trichet as they weigh the outlook for future policy.
We expect the Mr. Trichet to maintain a cautious outlook for the region as policy makers see the economic recovery tapering off, and the central bank head is likely to talk down the risks for inflation as he expects price growth to remain subdued going into 2011. However, a shift in the Governing Council’s economic assessment is likely to stoke increased volatility in the exchange rate, and the board may adopt an increasingly dovish tone as the outlook for future growth remains clouded with uncertainties. Nevertheless, the final 2Q GDP reading for the Euro-Zone showed economic activity expanded 1.0% from the first three-months of the year, which was largely in-line with expectations. However, the breakdown showed household consumption tipped 0.2% higher amid an initial forecast for a 0.5% rise, while gross fixed capital formations increased 1.5% versus earlier projections for a 1.8% expansion, and the ongoing weakness in the private sector could lead the ECB maintain a loose policy stance throughout the beginning of 2011 as it aims to encourage a sustainable recovery.
The British Pound fell back from a high of 1.5938 during the European trade to maintain the narrow range carried over from the previous month, and the GBP/USD is likely to hold steady ahead of the Bank of England interest rate decision due out tomorrow. The BoE is anticipated to hold the benchmark interest rate at 0.50% and maintain its asset purchase target at GBP 200B this month, but the central bank may refrain from releasing a policy statement, which could produce muted price action for the event. As a result, the GBP/USD may trend steady in the coming days until we get the BoE policy meeting minutes due out on October 20, and we expect board member Andrew Sentance to push for a 25bp rate hike as inflation continues to hold above the government’s 3% limit for price growth. However, if we see a three-way split within the MPC, speculation for further easing is likely to generate a bearish breakout in the exchange rate, which could lead the GBP/USD to retrace the advance from the previous month.
The greenback weakened across the board, with the USD/JPY slipping to a fresh yearly low at 82.72, and the bearish sentiment surrounding the dollar may carry into the end of the week as the economic docket is expected to reinforce a weakened outlook for future growth. The ADP employment report showed private payrolls unexpectedly slipped 39K in September amid forecasts for a 20K rise, and the data does not bode well for Friday’s non-farm payrolls report given the underlying weakness in the U.S. labor market. Nevertheless, risk trends may play a greater role in driving price action for the major currencies on Wednesday given the soft batch of economic event risks, and a shift in risk sentiment could prop up the greenback as it benefits from safe-haven flows.
6 окт. 2010 г.
EURUSD At Crossroads of The 61.8% Fibonacci Retracement; Fitch Cuts Ireland's Credit Rating
Fundamental Headlines
• Dollar Falls on Fed Speculation – Wall Street Journal
•Asian Stocks Climb as Gold Hits Record – Wall Street Journal
• IMF Chief Warns on Exchange Rate Wars - Financial Times
•Goldman Sachs Says U.S. Economy May Be “Fairly Bad” - Bloomberg
• Global Central Bank Action May Follow BoJ Moves On Rates– Bloomberg
EURUSD: Factory orders in Germany jumped 3.4 percent in August after falling some 1.6 percent the month prior, while the annualized figures soared 20.3 percent during the same period. Taking a look at the breakdown of the report, capital goods rose a massive 6.7 percent to mark the largest advance this year in the component, while consumer goods shed 3.9 percent to taper the advance. Despite today’s advance in factory orders, the euro was little changed against the U.S. dollar as focus turns to the ADP employment change for the month of September, which is being released ahead of the highly anticipated Nonfarm payrolls report.
At the same time, the EURUSD is at the crossroads of the 61.8 percent Fibonacci retracement on the December 3rd 2009 to June 7th 2010 downswing. Failure to break above this level will expose downside risks back towards 1.3512.
Meanwhile, the European Union during the overnight trade said that Greece’s 2006-2009 deficit will be revised to the upside, and went onto add that “areas of uncertainty” remain for Greece’s debt and deficit. This does not bode well for Greece as the country will implement tough austerity measures along with some of its neighbors, which will in turn weigh on growth. Thus, the EURUSD may return towards 1.300 during the first quarter of next year. Not to overlook, Fitch cut Irelands credit rating from AA- to A+.
Written by Michael Wright, Currency Analyst
• Dollar Falls on Fed Speculation – Wall Street Journal
•Asian Stocks Climb as Gold Hits Record – Wall Street Journal
• IMF Chief Warns on Exchange Rate Wars - Financial Times
•Goldman Sachs Says U.S. Economy May Be “Fairly Bad” - Bloomberg
• Global Central Bank Action May Follow BoJ Moves On Rates– Bloomberg
EURUSD: Factory orders in Germany jumped 3.4 percent in August after falling some 1.6 percent the month prior, while the annualized figures soared 20.3 percent during the same period. Taking a look at the breakdown of the report, capital goods rose a massive 6.7 percent to mark the largest advance this year in the component, while consumer goods shed 3.9 percent to taper the advance. Despite today’s advance in factory orders, the euro was little changed against the U.S. dollar as focus turns to the ADP employment change for the month of September, which is being released ahead of the highly anticipated Nonfarm payrolls report.
At the same time, the EURUSD is at the crossroads of the 61.8 percent Fibonacci retracement on the December 3rd 2009 to June 7th 2010 downswing. Failure to break above this level will expose downside risks back towards 1.3512.
Meanwhile, the European Union during the overnight trade said that Greece’s 2006-2009 deficit will be revised to the upside, and went onto add that “areas of uncertainty” remain for Greece’s debt and deficit. This does not bode well for Greece as the country will implement tough austerity measures along with some of its neighbors, which will in turn weigh on growth. Thus, the EURUSD may return towards 1.300 during the first quarter of next year. Not to overlook, Fitch cut Irelands credit rating from AA- to A+.
Written by Michael Wright, Currency Analyst
5 окт. 2010 г.
USD Graphic Rewind
The dollar climbed steadily yesterday to notch up only its third positive close in the last thirteen trading sessions. A variety of factors lifted the dollar against its main trading partners, varying from revived concerns about Europe’s banks to simple profit taking in euro long positions which had entered over-bought territory. Global equities traded lower for most of the day Monday which lifted the dollar as investor’s exited positions. We were looking for the dollar to break back across Friday’s low against the euro at 1.3620 to alleviate topside pressure, something the dollar has been unable to do thus far and as such leaves the current move as little more than consolidation after such sharp dollar losses, but the overall structure remains in place and as we mentioned yesterday we now favour the possibility of the index testing support at 75.00.
Looking ahead, the index has started brightly again today and if it can managed a second consecutive higher close it will be the first time since early September to put in two consecutive higher closes. Looking at the way investors normally taking holding patterns ahead of the NFP release we still favour only moderate moves for the dollar the rest of the week in either direction.
Written by Jonathan Granby, DailyFX Research Team
Aussie and Yen Hit Hard Following Unexpected Rate Decisions
The Australian Dollar is by far the weakest currency on the day thus far, and should continue to be one of the weaker currencies for the remainder of the day after the Reserve Bank of Australia surprised markets by leaving rates on hold at 4.50%, while also offering a far less than hawkish accompanying statement. Although the central bank conceded that higher rates would be appropriate at some point in the future, comments that the “financial markets were still uncertain” and “overall credit growth remained subdued” were enough to send chills down the spines of Aussie bulls.
Technically, the pullback in the currency is certainly warranted, with daily studies rolling over from overbought after the antipodean rallied most impressively against the buck over the past 5 weeks. Rallies have stalled about a hundred points off the key multi-year highs from 2008 by 0.9850, but as we have mentioned in our analysis, the Australian Dollar sits by longer-term cycle highs and is at risk for a material pullback over the medium and longer-term. The fundamental catalyst has yet to fully reveal itself, but we anticipate that today’s rate decision could start to paint that picture with an economy that is becoming more aware of just how reliant it is on a shaky global outlook.
One must not overlook some other key developments over the past few hours that only help to reaffirm the case for additional Aussie weakness. On the data front, Australian retail sales have come in softer than expected, while at the same time, China services PMI has dropped in September. Aussie bulls have been very quick to discount problems in the US and Eurozone, on stronger local fundamentals and a very upbeat China outlook, and although it is only one day’s worth of economic data, the results are sure to force some reconsideration of positioning.
Another major development has been the latest Bank of Japan rate decision which has opened some decent selling in the Yen after the BOJ also surprised markets by easing monetary policy further, effectively lowering rates to 0.0% (0.0%-0.10%) and concurrently stepping up asset purchases. The BOJ cited a strong Yen and slower global economy as the reasons for the Japanese slowdown and deterioration in corporate sentiment.
Looking ahead, Swiss inflation data (0.0% expected) is due out at 7:15GMT, followed by German services PMI (54.6 expected) and Eurozone services PMI (53.8 expected) at 7:55GMT and 8:00GMT respectively. UK services PMI (51.0 expected) is then out at 8:30GMT, along with UK official reserves (changes), while Eurozone retail sales (0.2% expected) caps things off for the European economic calendar at 9:00GMT. US equity futures are tracking marginally higher, while commodities are also bid, with gold still just off of its record highs.
Written by Joel Kruger, Technical Currency Strategist
Technically, the pullback in the currency is certainly warranted, with daily studies rolling over from overbought after the antipodean rallied most impressively against the buck over the past 5 weeks. Rallies have stalled about a hundred points off the key multi-year highs from 2008 by 0.9850, but as we have mentioned in our analysis, the Australian Dollar sits by longer-term cycle highs and is at risk for a material pullback over the medium and longer-term. The fundamental catalyst has yet to fully reveal itself, but we anticipate that today’s rate decision could start to paint that picture with an economy that is becoming more aware of just how reliant it is on a shaky global outlook.
One must not overlook some other key developments over the past few hours that only help to reaffirm the case for additional Aussie weakness. On the data front, Australian retail sales have come in softer than expected, while at the same time, China services PMI has dropped in September. Aussie bulls have been very quick to discount problems in the US and Eurozone, on stronger local fundamentals and a very upbeat China outlook, and although it is only one day’s worth of economic data, the results are sure to force some reconsideration of positioning.
Another major development has been the latest Bank of Japan rate decision which has opened some decent selling in the Yen after the BOJ also surprised markets by easing monetary policy further, effectively lowering rates to 0.0% (0.0%-0.10%) and concurrently stepping up asset purchases. The BOJ cited a strong Yen and slower global economy as the reasons for the Japanese slowdown and deterioration in corporate sentiment.
Looking ahead, Swiss inflation data (0.0% expected) is due out at 7:15GMT, followed by German services PMI (54.6 expected) and Eurozone services PMI (53.8 expected) at 7:55GMT and 8:00GMT respectively. UK services PMI (51.0 expected) is then out at 8:30GMT, along with UK official reserves (changes), while Eurozone retail sales (0.2% expected) caps things off for the European economic calendar at 9:00GMT. US equity futures are tracking marginally higher, while commodities are also bid, with gold still just off of its record highs.
Written by Joel Kruger, Technical Currency Strategist
1 окт. 2010 г.
US Dollar Will Follow Fed Speeches, NFPs for Stimulus Clues
There is little denying it: the US dollar is tumbling. There is only one step below the performance that the greenback is experiencing now and that is ‘free-fall.’ The difference between these two states? A free fall would denote irrational selling that would soon reach its peak and turn the market to stability or a reversal. Therefore, the benchmark currency may actually be experiencing the worst scenario because its losses are steady. Even technical traders should be aware that momentum is the key to gauging the eventual deceleration and inevitable turn for the US dollar. That being said, fundamentals can certainly accelerate this process; but does the scheduled and exogenous event risk on tap for next week seem like it will curb the dollar’s losses or add to them?
First and foremost, it is import to establish that the greenback’s primary catalyst is not risk appetite trends but rather speculation that the Federal Reserve is on track to expand stimulus – not that it would matter too much at this point because investor optimism has maintained a bullish bias since the beginning of September. With this in mind, we scan what we have on the calendar that can spark speculation surrounding monetary policy plans. The most pertinent driver therefore could be the range of Fed speeches that are spread throughout the week. It will start off heavy with Q&A and a statement on fiscal sustainability from Fed Chairman Ben Bernanke. The Board of Directors may decide stimulus on a consensus system; but the chair holds particular sway over opinions. Later in the week, we will see the Fed’s Fisher, Hoenig and Tarullo. Interestingly enough these three have shown a hawkish lean at one point or another in the past; so if they fold to the need for more stimulus; it will be construed as far more likely that easing is an ultimate outcome.
When reviewing the economic data scheduled for release over the coming week, we need to view it with the same stimulus angle that we will watching the Fed commentary from. Notable improvements in the economic forecast could go a long way towards dissuading the central bank from expanding its already massive $2 trillion stimulus plan and therefore flooding the system with dollars while simultaneously putting the nation’s finances in a further stressed situation. There is a lot to review including: factory orders, pending home sales, consumer credit, ADP employment change and ISM services. All of these are meaningful in the bigger picture framing. However, since this is a speculative reaction we are looking at, the NFPs carries the most weight as it is considered an easy to interpret gauge of economic activity. That being said, this indicator is due on Friday; and a lot can happen between the start of the week and that release.
And, while it is pretty clear that the market is fully preoccupied with the stimulus debate at the moment; we should not merely ignore the implications of risk appetite trends. If the capital markets find traction once again, will the dollar leverage its losses or will sentiment help by restraining the need for a government safety net. Then again, if confidence collapses, won’t it amplify the need for help?
First and foremost, it is import to establish that the greenback’s primary catalyst is not risk appetite trends but rather speculation that the Federal Reserve is on track to expand stimulus – not that it would matter too much at this point because investor optimism has maintained a bullish bias since the beginning of September. With this in mind, we scan what we have on the calendar that can spark speculation surrounding monetary policy plans. The most pertinent driver therefore could be the range of Fed speeches that are spread throughout the week. It will start off heavy with Q&A and a statement on fiscal sustainability from Fed Chairman Ben Bernanke. The Board of Directors may decide stimulus on a consensus system; but the chair holds particular sway over opinions. Later in the week, we will see the Fed’s Fisher, Hoenig and Tarullo. Interestingly enough these three have shown a hawkish lean at one point or another in the past; so if they fold to the need for more stimulus; it will be construed as far more likely that easing is an ultimate outcome.
When reviewing the economic data scheduled for release over the coming week, we need to view it with the same stimulus angle that we will watching the Fed commentary from. Notable improvements in the economic forecast could go a long way towards dissuading the central bank from expanding its already massive $2 trillion stimulus plan and therefore flooding the system with dollars while simultaneously putting the nation’s finances in a further stressed situation. There is a lot to review including: factory orders, pending home sales, consumer credit, ADP employment change and ISM services. All of these are meaningful in the bigger picture framing. However, since this is a speculative reaction we are looking at, the NFPs carries the most weight as it is considered an easy to interpret gauge of economic activity. That being said, this indicator is due on Friday; and a lot can happen between the start of the week and that release.
And, while it is pretty clear that the market is fully preoccupied with the stimulus debate at the moment; we should not merely ignore the implications of risk appetite trends. If the capital markets find traction once again, will the dollar leverage its losses or will sentiment help by restraining the need for a government safety net. Then again, if confidence collapses, won’t it amplify the need for help?
Forex: Euro Extends Advance on U.S. Dollar Weakness, British Pound Holds Tight Range
After clearing 1.3500, the 50.0% Fibonacci retracement from the 2009 high to the 2010 low, the EUR/USD remains well overbought as the daily relative strength index holds above 70, but the exchange rate may continue to push higher over the near-term given the bearish sentiment underlying the U.S. dollar. Meanwhile, European Central Bank board member Lorenzo Bini Smaghi said policy makers was a risk for a crowding-out effect as policy makers prepare to implement the new Basel III regulations, and said it could lead to increased “risk-taking behavior” once banks start to change their investment strategies.
Mr. Bini Smaghi went onto say that the shift in the financial system could affect the central bank’s ability to manage “short-term rates, and thus to signal its monetary policy stance,” and pledged to monitor “whether a shift in demand from short-term to longer-term operations will take place” as it aims to strengthen the financial system. Meanwhile, the economic docket showed confidence in the Euro-Zone unexpectedly increased to its highest level since 2006, with the index rising to 103.2 in September from 101.8 in the previous month, while the gauge for business sentiment advanced to 0.77 from a revised 0.72 in August to mark the highest reading since December 2007. As growth prospects improve, policy makers may raise their economic outlook going into 2011, but the ongoing weakness in the financial system paired with the implementation of the austerity measures could lead the ECB to maintain a loose policy stance throughout the beginning of the following year as it aims to stem the downside risks for the region. As a result, the euro may face strong headwinds going into the end of 2010 as the central bank continues to see a risk for an uneven recovery, and ECB President Jean-Claude Trichet may continue to talk down speculation for a rate hike as price growth remains subdued.
The British Pound fell back from a high of 1.5874 during the European trade and may test 1.5700, the 38.2% Fibonacci retracement from the 2009 low to high, for near-term support as it pares the sharp rally from the previous week. However, as price action holds within the previous day’s range, the GBP/USD may consolidate further going into the end of the week as the recent advance stalls just shy of 1.5900. Meanwhile, a report by the Bank of England showed mortgage approvals in the U.K. increased 47.4K in August after expanding a revised 48.3K in the previous month, while consumer credit unexpectedly slipped GBP 0.1B during the same period amid forecasts for a GBP 0.1B rise. Given the ongoing weakness within the real economy, the BoE may increase its willingness to expand quantitative easing over the coming months, and speculation for further easing could lead the GBP/USD to retrace the advance from earlier this month as investors weigh the prospects for future policy.
The greenback continued to weaken against most of its major counterparts, with the USD/JPY slipping to a fresh weekly low of 83.49, and the bearish sentiment behind the dollar could intensify going forward as investors maintain a cautious outlook for the world’s largest economy. As equity futures foreshadow a higher open for the U.S. market, a rise in risk appetite could fuel further weakness in the greenback, and the dollar-yen may continue to retrace the sharp rally from the Bank of Japan currency intervention as price action looks poised to test 83.00 again.
Mr. Bini Smaghi went onto say that the shift in the financial system could affect the central bank’s ability to manage “short-term rates, and thus to signal its monetary policy stance,” and pledged to monitor “whether a shift in demand from short-term to longer-term operations will take place” as it aims to strengthen the financial system. Meanwhile, the economic docket showed confidence in the Euro-Zone unexpectedly increased to its highest level since 2006, with the index rising to 103.2 in September from 101.8 in the previous month, while the gauge for business sentiment advanced to 0.77 from a revised 0.72 in August to mark the highest reading since December 2007. As growth prospects improve, policy makers may raise their economic outlook going into 2011, but the ongoing weakness in the financial system paired with the implementation of the austerity measures could lead the ECB to maintain a loose policy stance throughout the beginning of the following year as it aims to stem the downside risks for the region. As a result, the euro may face strong headwinds going into the end of 2010 as the central bank continues to see a risk for an uneven recovery, and ECB President Jean-Claude Trichet may continue to talk down speculation for a rate hike as price growth remains subdued.
The British Pound fell back from a high of 1.5874 during the European trade and may test 1.5700, the 38.2% Fibonacci retracement from the 2009 low to high, for near-term support as it pares the sharp rally from the previous week. However, as price action holds within the previous day’s range, the GBP/USD may consolidate further going into the end of the week as the recent advance stalls just shy of 1.5900. Meanwhile, a report by the Bank of England showed mortgage approvals in the U.K. increased 47.4K in August after expanding a revised 48.3K in the previous month, while consumer credit unexpectedly slipped GBP 0.1B during the same period amid forecasts for a GBP 0.1B rise. Given the ongoing weakness within the real economy, the BoE may increase its willingness to expand quantitative easing over the coming months, and speculation for further easing could lead the GBP/USD to retrace the advance from earlier this month as investors weigh the prospects for future policy.
The greenback continued to weaken against most of its major counterparts, with the USD/JPY slipping to a fresh weekly low of 83.49, and the bearish sentiment behind the dollar could intensify going forward as investors maintain a cautious outlook for the world’s largest economy. As equity futures foreshadow a higher open for the U.S. market, a rise in risk appetite could fuel further weakness in the greenback, and the dollar-yen may continue to retrace the sharp rally from the Bank of Japan currency intervention as price action looks poised to test 83.00 again.
Hungarian Forint Rises on Austerity Pledges & Economic Outlook
The Easter European currencies, including the Hungarian forint, were rising today as the improving sentiment about Europe’s economy and the governments’ pledge to cut the budget deficits attracted the foreign funds.
The Hungarian government pledged to narrow the nation’s budget deficit below 3 percent, causing the speculation that Hungary’s rating wouldn’t be downgraded by the Standard & Poor’s. The Hungarian currency was also helped by the improving outlook for the whole European economy, caused by the growing economies in such countries as Germany and Poland.
USD/HUF dropped today from 202.29 to 199.29 as of 11:59 GMT.
If you want to comment on the Hungarian forint’s recent action or have any questions regarding this currency, please, feel free to reply below.
The Hungarian government pledged to narrow the nation’s budget deficit below 3 percent, causing the speculation that Hungary’s rating wouldn’t be downgraded by the Standard & Poor’s. The Hungarian currency was also helped by the improving outlook for the whole European economy, caused by the growing economies in such countries as Germany and Poland.
USD/HUF dropped today from 202.29 to 199.29 as of 11:59 GMT.
If you want to comment on the Hungarian forint’s recent action or have any questions regarding this currency, please, feel free to reply below.
Krona at Two-Year Record on Outlook for Monetary Tightening
The Swedish krona rose today to the highest level in two years versus the US dollar on the speculation that the central bank would perform its monetary tightening plans and as the economic data was favorable.
The Riksbank said it would increase the benchmark repo rate more than 2 percentage points over the next two years to about 3 percent. The reports showed that the manufacturing expanded for the 16th straight month, while the consumer and business confidence was at its highest level in the decade.
USD/SEK wend down from 6.7360 to 6.7095 as of 10:24 GMT today, following the drop to 6.6746, the lowest level since September 2008.
If you want to comment on the Swedish krona’s recent action or have any questions regarding this currency, please, feel free to reply below.
Earlier News About the Swedish Krona:
» Swedish Krona Down on Eurozone Optimism (2010-03-03)
» Krona Hits Record High on Swedish Interest Rate Outlook (2010-02-12)
» Swedish Krona Gains on Greece's Budget Deficit (2010-01-16)
» Swedish Krona Down on U.S. Optimism (2009-12-16)
» Swedish Krona Posts Biggest Fall in 2 Weeks (2009-11-18)
This entry was posted on Friday, October 1st, 2010 at 12:24 pm and is filed under Swedish Krona. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.
The Riksbank said it would increase the benchmark repo rate more than 2 percentage points over the next two years to about 3 percent. The reports showed that the manufacturing expanded for the 16th straight month, while the consumer and business confidence was at its highest level in the decade.
USD/SEK wend down from 6.7360 to 6.7095 as of 10:24 GMT today, following the drop to 6.6746, the lowest level since September 2008.
If you want to comment on the Swedish krona’s recent action or have any questions regarding this currency, please, feel free to reply below.
Earlier News About the Swedish Krona:
» Swedish Krona Down on Eurozone Optimism (2010-03-03)
» Krona Hits Record High on Swedish Interest Rate Outlook (2010-02-12)
» Swedish Krona Gains on Greece's Budget Deficit (2010-01-16)
» Swedish Krona Down on U.S. Optimism (2009-12-16)
» Swedish Krona Posts Biggest Fall in 2 Weeks (2009-11-18)
This entry was posted on Friday, October 1st, 2010 at 12:24 pm and is filed under Swedish Krona. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.
Aussie Drops from Two-Year Record, Remains Strong
The Australian dollar fell today, after reaching the highest level in two years against the US dollar, as the report showed that the new home approvals declined in August, causing the speculation that the central bank wouldn’t raise the interest rates next week.
The Australian Bureau of Statistics reported today that the number of the new building approvals dropped 4.7 percent in August, compared with 0.1 percent increase in the month before. The experts expected no change. It’ll take some time to determine where Australia’s economy are heading, but the economists say that Australia’s currency is doing very well and there is not much downward momentum.
The swaps dropped to 52 percent the chance that the Reserve Bank of Australia will increase its borrowing costs at the next meeting of its policy makers on October 5th. The analysts say in case of the rates hike the Aussie may head to parity with the US currency.
AUD/USD dropped from 0.9694 down to 0.9636 as of 18:12 GMT today after it touched 0.9732, the highest level since July 2008. EUR/AUD went up from 1.4052 to 1.4118, following the decline to 1.4022.
If you want to comment on the Australian and the New Zealand dollars’ recent action or have any questions regarding this currency, please, feel free to reply below.
The Australian Bureau of Statistics reported today that the number of the new building approvals dropped 4.7 percent in August, compared with 0.1 percent increase in the month before. The experts expected no change. It’ll take some time to determine where Australia’s economy are heading, but the economists say that Australia’s currency is doing very well and there is not much downward momentum.
The swaps dropped to 52 percent the chance that the Reserve Bank of Australia will increase its borrowing costs at the next meeting of its policy makers on October 5th. The analysts say in case of the rates hike the Aussie may head to parity with the US currency.
AUD/USD dropped from 0.9694 down to 0.9636 as of 18:12 GMT today after it touched 0.9732, the highest level since July 2008. EUR/AUD went up from 1.4052 to 1.4118, following the decline to 1.4022.
If you want to comment on the Australian and the New Zealand dollars’ recent action or have any questions regarding this currency, please, feel free to reply below.
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