|
10 Second Summary
The high yielding Pacific pair outperformed their rivals as the prospect of continued easing US monetary policy and more cash injection by the ECB provided fundamental support for the AUD and NZD. Further evidence that the US economy is recovering will provide additional leverage to riskier asserts throughout the weekend session.
|
|
Australian Dollar
While profit taking pulls the AUD down from its recent high, the Aussie is still trading in the high 1.05Sc levels. Macro funds are turning out to be the major offshore Aussie buyers. Though the market’s support for high yielding risky currency remains intact, the Aussie is sitting right in the middle of the ‘overbought’ bull’s eye. Purchasing part of your FX needs could be a good strategy to protect from future volatility.
|
|
United States Dollar
Wall Street loses traction on home sales and profit taking. Jobless claims rose by 377K while new home sales were down 2.2%. The Dollar however failed to wet investors’ appetite as dovish Fed drove them green pastures elsewhere. Market will now eye tonight’s consumer sentiment, however with ultra low rates expected till late 2014, the Greenback will stay under pressure for a few days.
|
|
Euro
Media reports of progressing Greek debt talks helped the Euro. German consumer confidence rising to 5.9 was a secondary catalyst in the rise of the EUR. However despite this latest bounce, analysts maintain that the overall outlook for the Single currency is still shaky.
|
|
Japanese Yen
Investors support for risk appetite is keeping the Yen under house arrest. With this risk rally showing no signs of fatigue, traders would remain wary of investing into the JPY for now.
|
|
New Zealand Dollar
The Kiwi rose to a three month high, but soon turned back as risk market hits US housing speed bump. Today’s December trade balance is likely to indicate a surplus on the back of strong dairy exports and should keep the NZD hovering above the mid 81USc levels.
|