SYDNEY (MarketWatch) — The Australian dollar jumped to a fresh post-float high of $1.0316 on Wednesday before falling back to $1.0307. That was the highest level for the currency since it was allowed to float freely in 1983. The currency rose to a high of $1.0314 on Monday, which analysts attributed to companies shifting capital back to the country following devastating floods early in the year. On Wednesday, currency strategists at Forex.com said that they believe broad risk appetite is driving the Australian dollar higher and that if the S&P 500 index heads toward 1,335 then the Australian dollar may hit $1.0400.
Archive for March, 2011
European equities are currently pointed lower as the small relief rally during the Asian session ended when the city of Fukushima experienced several earthquake aftershocks, creating obstacles for production rebuilding operations. The FTSE 100 futures have dropped 0.6 percent on the news release.
Today, traders will be paying attention to the Bank of England Minutes from its last policy meeting, which will give some insight into the Bank’s opinion for future interest rate decisions. These have taken on a higher level of importance after yesterday’s consumer price index rose higher than anticipated on a yearly basis. Inflation at these levels makes the situation difficult for the BoE and they may have no choice at this point but to increase interest rates. Other headlines out of the U.K. will fo Full post…
While I’m fondest of analyzing all currencies relative to the Dollar (after all, it’s what I’m most familiar with and is involved in almost half of all forex trades), sometimes its interesting to look at cross rates.
Take the Pound/Euro, for example, arguably one of the most important crosses, and one of a handful that often moves independently of the Dollar. If you chart the performance of this pair over the last two years, however, you can see the distinct lack of volatility. It has fluctuated around an axis of 1.15 GBP/EUR, never straying more than 5% in either direction. In fa
EURUSD: Bullish, Set For More Gains EURUSD: The pair remains on the offensive in today’s trading session following its Thursday gains. A firm hold above its Nov 08’2010 high at 1.4083 just violated will set the stage for a return to the 1.4281 level traded in early Nov 2010. On a further strength through this level, the EUR will resume its long term uptrend and then target the 1.4411 level. Its daily RSI is bullish and pointing higher. Alternatively, support stands at the 1.4035 level followed by the 1.3852 level, its Mar 15’2011 low with a breach of that level allowing for more declines towards the 1.3754 level. A cle Full post…
The British Pound has risen almost 15% against the Dollar over the last twelve months. It seems that the markets are ignoring the fiscal concerns that sent the Pound tumbling in 2010, and focusing more on inflation and the prospect of interest rate hikes. At this point, the Bank of England (BOE) is now racing with the European Central Bank (ECB) to be the first “G4″ Central Bank to hike rates.
You can find cause for optimism towards the Pound in technical factors alone. Tha
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There are many online payment systems, that help you in Foreign exchange and money transfer. These systems enable online merchants to view transaction details, contact a large number of affiliates, and provide excellent customer service through extensive payment options. Full post…
I ended my previous post on the subject by noting that emerging market Central Banks were at a crossroads. Either they would raise interest rates and accept currency appreciation, or they would risk hyperinflation and economic instability. While the jury is still out on a handful of cases, it looks like most of the emerging market countries in Asia have chosen the former.
In February, the Bank of Indonesia raised its benchmark interest rate to 6.75%, from a record low of 6.5%. The People’s Bank of China (PBOC) has now hiked rates three times in the current tightening cycle. A
INTRADAY TRADING SIGNAL BY ACETRADER.COM: USD/JPY
USD/JPY : 82.33
Last Update At 07 Mar 2011 00:15 GMT
Despite extending Friday’s decline fm 83.09 (NY)
marginally lower to 82.20 in Australia, present
rebound suggests initial sideways trading is seen
in Tokyo morning n recovery to 82.50/60 is likely
but 82.79 wud cap upside, yield another fall later.
For st trade, buy on next decline for 82.50 or
sell if dlr rises to 82.60 1st for 82.25.
Range Forecast
82.20 / 82.50
Resistance/Support
R: 82.79 / 82.87 / 83.09
S: 82.20 / 81.93 / 81.73