FOREXYARD: Forex News Blog | |
| AUD/USD Breaks Significant Barrier Posted: 16 Sep 2010 05:58 AM PDT
The AUD/USD pair made an important breakout on Chinese data and risk appetite. China is Australia's principal trade partner. As the data was published over the weekend, the reaction came in the form of a weekend gap – AUD/USD opened around 0.93, higher than the 0.9263 close. So now, trading at 0.9360, the Aussie is at a 5 month high. There are even more technical barriers ahead for this strong currency. A break above this level will send the pair towards the 2009 high of 0.9405 which is also a significant barrier. The next lines are at 0.95 and 0.97 which were last seen in 2008 before the financial crisis. • Both the Slow Stochastic and the MACD have completed a bullish cross lately, suggesting that the bullish move has more room to go.
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| Will Japan’s Intervention Weaken the Yen Further? Posted: 15 Sep 2010 11:18 PM PDT
Yesterday, the most fascinating economic development was clearly Japan's move to devalue the yen. The Japanese leadership saw the yen reaching a 15-year high against the U.S. dollar and understood that severe actions must be taken to halt this bullish trend. The concern was that the strong yen will create critical damage to the country's export industry, and as a result negatively impact the entire economy. As a result, the yen saw irregular trading, and lost about 3% of its value in a single trading day. This has provided unusual opportunities to create large short-term profits. Today, if news of continued intervention arrives, the bearish trend is likely to continue. In addition, here are today's leading economic releases: • 12:00 GMT, Swiss Libor Rate – The Libor Rate is the Swiss interest rates announcement for the next month. Analysts expect that the Swiss National Bank (SNB) will leave rates at 0.25%. If the SNB will surprise and deicide to hike rates, the CHF may be boosted as a result. • 12:30 GMT, US Unemployment Claims – This report measures the number of individuals who filed for unemployment insurance for the first time during the past week. If the end result will reach below 400,000 it is likely to boost confidence in the global economic recovery. This would likely boost risk-appetite, and as a result weaken the dollar which is considered to be a safe haven asset. • 13:00 GMT, US Long-Term Purchases – The report measures the level of foreign investment in US long-term securities, as opposed to local investment. If the end result will beat expectations for 37.9B, the dollar may weaken as a result. |
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