USD Trading Outlook (15-10-2010)

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&amp 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.