Currencies Archive

The AUD had a strong bounce yesterday on the back of a number of factors; the lack of dovishness by the RBA, the budget impasse in the US causing a partial government shut-down, and strong support-on-dips from some big real-money funds. Chinese markets remain closed… Read more

The budget impasse in the US looks increasingly likely to lead to at least a partial US government shutdown and this in turn has led to risk-aversion in the FX markets. The main movers have been USD/JPY and USD/CHF, with both pairs breaking lower. The… Read more

It’s been another very quiet 24 hours in the FX market. The Yen fell on more stimulus talk and the GBP had some brief volatility around the UK GDP data but otherwise it’s been very quiet. The AUD/USD continues to stall just above the previous… Read more

The NZD was the main mover over the last 24 hours, giving up quite a lot of ground against most of the other major currencies and this in turn has had an effect on the AUD, which has also slipped on the crosses. The economic… Read more

The big risk event surrounding taper-policy at the Federal Reserve is only 24 hours away and whilst the overall FX market has stagnated, the AUD continues to grind higher. This suggests to me that the market is short and nervous and we may be in… Read more

The USD has started the week on a weak note after Larry Summers withdrew from the race for the Fed chairmanship. AUD/USD has jumped back above .9300 in thin early-Asian markets and we are again eyeing important technical resistance at .9350. There is nothing of… Read more

The short-term bullish AUD sentiment was rudely shattered yesterday by some poor unemployment data. The market got itself long in anticipation of a good number and there was talk of very large stops above .9350. This all came to nothing after the data and the… Read more

The AUD continued its broad recovery overnight making solid gains against all of the other majors. Turnover was very heavy and it was AUD/JPY which again led the way. The easing of international tensions surrounding Syria has encouraged many to reduce their ‘risk-aversion’ hedges. There… Read more

Emerging markets finally settled down last night but not before the Indian Rupee and the Turkish Lira made new lows against the USD. The AUD/USD managed also to stabilise around the .9000 mark, mainly due to heavy AUD/JPY buying by Japanese retail players. If the… Read more

The AUD bulls were driven back by heavy selling in AUD/USD near .9230 and in EUR/AUD near 1.4450. I’m still strongly of the opinion that we are in a consolidation phase for the AUD against most of the other majors and this will remain until… Read more