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10 Second Summary
With the AUD riding the positive wave created following the US data releases the technical outlook foreshadows a sharp selloff in the exchange rate as the high-yielding currency remains overbought. The expectations of RBA to lower the benchmark interest rate tomorrow likely to initiate the AUD reversal so prudent importers wil l take advantage of present great levels.
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Australian Dollar
AUD did manage to push higher over the weekend,reflecting the positive US jobs data and expectations are for the AUD to trade strongly for immediate short term. The market mover this week very likely be with the RBA cutting rates for a third consecutive time on Tuesday, will they do as expected or suprise us all?
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United States Dollar
The Greenback has strengthened from levels close to post-war lows against the Japanese Yen after this Januarys Non-Farm Payroll report surprised markets with a figure well above expectations. Showing employers to have added an impressive 243,000 jobs last month, a figure larger than both last months figure of 203,000 and this months expectation of 150,000. The US data may have reduced the likelihood of further dollar diluting quantitative easing measures from the Fed.
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Euro
The EUR zone have decided that they will not agree to bailout unless Greeks guarantee reforms.At this stage the Greek government are yet to create a debt plan and signs of conflict between the majority party and opposition. Despite relatively light weekend developments, rate decisions and commentary from the RBA, Bank of England and ECB are expected to weigh on the recent gains of their respective currencies.
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Japanese Yen
The JPY dropped after trading within one yen of its post-World War II high versus the dollar, reducing speculation the nation will intervene in the currency market to stem its appreciation.
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New Zealand Dollar
The kiwi dollar shot up on Friday afetr US report showed more jobs were added than forecast in January. If any large movements are to happen it will be offshore as today the kiwis are off celebrating the Treaty of Waitangi.
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