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Aussie Dollar: Must-See Charts

Thu, 09 May 2013 16:37:39 EDT

NEW YORK (TheStreet) -- The Aussie dollar is threatening a downside breakout from a nearly one-year trading range. The Royal Bank of Australia recently cut its key interest rate to 2.75 % and cited slowing growth and inflation levels running under target levels.

In my opinion, this is demonstrative of the deflation that the global economy is currently experiencing. In addition to the rate cut, rumors continue to abound of George Soros having a large short position in the currency.

RBA governor Glenn Stevens commented that the Aussie's strength "is unusual, given the decline in export prices and interest rates." It would seem to me that the RBA would like to see the Aussie lower, and I believe the possibility of lower prices is certainly in the cards....

New Soap Opera: The Comedy of Euros

Thu, 26 Jul 2012 16:27:45 EDT

NEW YORK (TheStreet) -- The term "European Theater" was first coined during World War II. Today in the financial markets, the term has come to symbolize an ongoing soap opera, where the audience is continually held in suspense as the bad actors (the politicians) promise actions and solutions to current crises, which have been created by their prior actions. Each time solutions are proposed, the audience breathes a sigh of relief (i.e., relief rally in the equity markets) only to be disappointed when they find out that the solutions won't work or can't be implemented.

As a result, the crisis and suspense continues, keeping the audience's total attention (even while dinner on the stove at home is burning). Meanwhile, a new issue or crisis appears, it seems, on a daily basis. Likely New Episodes Daily we watch yields on Spanish and Italian debt move ever higher, now in zones where other countries have cried "uncle" and asked for bailout help. At the same time, the credit default swaps on Spanish and Italian debt have risen to record levels.

New Episode: Will the capital markets force a Spanish bailout by locking Spain out of the debt markets? Spanish bank recapitalization: We have recently learned that the European Central Bank is willing to impose losses on the shareholders and junior bondholders of some of the Spanish savings banks. (When they bailed out Ireland, all bondholders were saved.) The draft of the document meant to give Spain's banks 100 billion euros has this provision, but the periphery's finance ministers are opposing it....

US Dollar Rallies Following The Release Of The FOMC Minutes

Wed, 11 Jul 2012 15:40:00 EDT

By Adrian Robles,

Today the FXCM US Dollar Index (Ticker: USDollar ) rallied after the release of the Minutes from the June FOMC meeting. The Minutes reiterated the information that was given in the FOMC’s statement and Fed Chairman Ben Bernanke’s press conference on June 20 th . The statement and the speech outlined that the Fed would be holding interest rates at 0.25 percent, and announced the extension Operation Twist. The event shattered some trader’s hopes for a more likely path towards a third round of the Quantitative Easing. Chart Created By Adrian Robles, GMT 5 min created in MarketScope The US Dollar Index rallied 30 points following the release of the FOMC Minutes. The price action following this event risk came at some surprise given that the Minutes did not offer any new information. This suggests the market was expecting further progress towards the acceptance towards and implementation of additional stimulus. The pop in the US Dollar suggests that traders are currently more concerned about the stability of the currency than the economic growth of the underlining country. As such the market is likely to have a risk aversion atmosphere until a policy authority announces further accommodation or data show a significant recovery. DailyFX is the forex news and research arm of FXCM, Inc (NYSE: FXCM), which provides currency trading and brokerage services and is an advertiser on TheStreet websites. Any opinions, news, research, analyses, prices, or other information is provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Currency trading involves significant risk of loss. Individual authors may hold positions in the currencies discussed in the article. Original Article: http://www.dailyfx.com/forex/market_alert/2012/07/11/US_Dollar_Rallies_Fallowing_the_Relase_of_the_FOMC_Minutes.html ...

US Dollar Rallies Following The Release Of The FOMC Minutes

Wed, 11 Jul 2012 15:40:00 EDT

By Adrian Robles,

AUDUSD: Trading Australia’s Employment Report

Wed, 11 Jul 2012 15:40:00 EDT

By David Song, Currency Analyst

Trading the News: Australia Employment Change ...

USD Index Looks To FOMC Minutes For Direction, GBP To Hold Range

Wed, 11 Jul 2012 10:15:00 EDT

By David Song, Currency Analyst

Index ...

US Dollar Firms Against Japanese Yen As Trade Balance Improves

Wed, 11 Jul 2012 09:43:00 EDT

By Christopher Vecchio, Currency Analyst

THE TAKEAWAY : US Trade Balance (MAY) > +3.8% to -$48.7B from -$50.6B > USDJPY BULLISH ...

Euro Relief Rally To Be Tamed By Growth Concerns, Dovish ECB

Wed, 11 Jul 2012 08:05:00 EDT

By David Song, Currency Analyst

Talking Points Euro: Spain To Implement EUR 65B In Austerity, ECB To Lend To Nine Banks British Pound: Eyes 1.5700 On Range-Bounce Prices, Outlook Hinges On BoE Minutes ...

Spain’s 65 Billion Euro Austerity Plan Whets Risk Appetite

Wed, 11 Jul 2012 06:42:00 EDT

By Benjamin Spier,

Traders viewed Spain’s 65 billion Euro austerity plan, which was announced earlier today by PM Rajoy, as a reason to increase their risk appetite; and therefore every major currency rallied against the safe haven US Dollar during the European session. The austerity plan that puts Spain at risk of further recessions will raise sales tax by 3%, cut bonuses for government workers and consolidate local governments. It will take 2.5 years to cut the 65 billion Euros, and the plan is double the amount of previously announced deficit cutting. ...

German Inflation Confirmed At 18-Month Low

Wed, 11 Jul 2012 02:36:00 EDT

By Benjamin Spier,

THE TAKEAWAY: German annual inflation confirmed at 1.7%, 18-month low -> Euro drops to new 2-year low after yesterday’s finance ministers’ meeting ...

US Dollar To Fall If Markets Find Support For QE3 Bets In FOMC Minutes

Wed, 11 Jul 2012 01:00:00 EDT

By Ilya Spivak, Currency Strategist

Talking Points US Dollar to Fall if Markets Pull QE3-Supportive Message from Fed Minutes Well-Established ECB Rate Cut Bets to Dull Impact of German CPI on Euro ...

Dollar Lacking The Oomph To Capitalize On 2-Year EURUSD Lows

Wed, 11 Jul 2012 00:12:00 EDT

By John Kicklighter, Sr. Currency Strategist Dollar Lacking the Oomph to Capitalize on 2-Year EURUSD Lows Euro Slides Across the Board as Finance Ministers Fail to Deliver British Pound Stimulus Having an Impact on Sterling, Still Euro-Dependent Australian Dollar Tracks US Equities, Curbs Reaction to Chinese Trade Data Japanese Yen on Countdown to BoJ Rate Decision Canadian Dollar Fortifying Position Between Data, Yield Stability Gold Drops Against High Yield and Safe Havens Alike

Dollar Lacking the Oomph to Capitalize on 2-Year EURUSD Lows ...

EURUSD: Trading The Federal Open Market Committee Minutes

Tue, 10 Jul 2012 22:00:00 EDT

By David Song, Currency Analyst

Trading the News: Federal Open Market Committee Meeting Minutes ...

USD To Hold Range Ahead Of FOMC Minutes, Further JPY Strength On Tap

Tue, 10 Jul 2012 11:45:00 EDT

By David Song, Currency Analyst

Index ...

EURUSD Falls To Fresh 2012 Lows As ESM Ratification Delayed In Germany

Tue, 10 Jul 2012 11:42:00 EDT

By Christopher Vecchio, Currency Analyst

After briefly trading back to 1.2300 earlier in today’s session, the EURUSD has put in fresh 2012 lows at 1.2235. Earlier today, Euro-zone finance ministers announced that €30 billion would be available to help bailout Spanish banks by the end of July, signaling the first such step forward to help recapitalize heavily indebted banks. ...