Currency Updates:
U.S. Dollar Trading (USD) was sent into a state of panic during the Asian session, setting the tone for the USD to trade at record lows once more against the AUD and XAU. Markets were sent into frenzy as the Singapore central bank (MAS) confirmed it would widen its currency band, causing a knee jerk reaction in selling of the USD. Further the MAS Tightened monetary policy, much to the markets surprise in an attempt to curb inflation, following large capital inflows into Asia in recent times. In domestic news, weekly jobless claims lifted to 465K from 445K, whilst US Trade deficit widened to 46.3 bln from 42.6 bln. In US Share markets ended slightly lower at -0.01%, S& P fell 1.46 points, whilst the NASDAQ also fell by -0.24%. Looking ahead, all focus will be on Fed chairman Bernanke speech on Friday, as the market tries to obtain further information on the much discussed second installment of QE. A slate of economic data is also scheduled with Retail Sales, CPI, and Michigan Consumer Confidence all released Friday.
The Euro (EUR) surged through the 1.4000 ceiling in Asia post Singapore news. Much of the follow through was attributed to a bout of stop losses being triggered ensuring the momentum in the Euro was pronounced. The EURUSD traded with a low of 1.3952 and a high of 1.4121 before closing the day at 1.4078. In data ahead, EUR CPI is expected to be released at 1.8%.
The Japanese Yen (JPY) set fresh 15 yeah highs against the USD, breaking the currency out of its tight range seen the previous day. Ignited by the Singapore Central Bank, the Japanese Yen found large demand on a knock on effect. The USDJPY traded at a low of 80.88 and a high of 81.84 before closing the day at 81.42.
The Japanese Yen (JPY) set fresh 15 yeah highs against the USD, breaking the currency out of its tight range seen the previous day. Ignited by the Singapore Central Bank, the Japanese Yen found large demand on a knock on effect. The USDJPY traded at a low of 80.88 and a high of 81.84 before closing the day at 81.42.
The Australian Dollar (AUD) traded once more at fresh post float high and came within a whisker of breaking the much publicized parity level. Boosted by the Singapore Central Bank actions in Asia, the Aussie dollar found further support as China Gov&rsquo t officials indicated that it was unlikely rates would be raised within the year. As a result the AUD traded at a high of 0.9994 and a low of 0.9893 before closing the day at 0.9941. Anticipation surrounds on whether the Aussie dollar can finally break through the magical 1.0000 on Friday, a Bearish Bernanke could be the catalyst needed to break through the ceiling
Oil & Gold (XAU) XAU once again traded a fresh record high on Thursday, to trade at a level of US$1387.20, whilst Oil also pushed higher to trade at US$84.12 a barrel, to take advantage of a weak USD.
