August 5th, 2014
The Euro was unable to sustain a recovery attempt on Tuesday and came under fresh selling pressure as the dollar gained renewed support after stronger than expected data.
The Australian Reserve Bank interest rate decision was one of the least contentious in recent memory with interest rates on hold at 2.50% and the bank not making any major comments on the Australian dollar’s value. AUD/USD initially moved higher to the 0.9340 area, but was unable to break above 0.9350 which triggered profit taking on longs. Read the rest of this entry »
August 4th, 2014
Monday’s trading maintained the familiar pattern seen after a Friday payroll release with generally lacklustre conditions and narrow ranges, amplified by the normal dip in trading volumes during August. The dollar overall was still hampered by profit taking and corrective pressures following strong gains last week ahead of Friday’s under-whelming employment report. Read the rest of this entry »
August 1st, 2014
Friday’s economic data was not strong enough to trigger further dollar buying with the currency subjected to profit taking after a strong week.
Equity markets generally remained on the defensive following sharp Wall Street losses overnight and risk conditions overall were fragile. There were mixed Chinese PMI readings with a stronger than expected official release offset by a downward revision to the HSBC number. The dollar overall proved resilient with USD/JPY support near 102.75 even though hostile conditions prevented a fresh attack on resistance above 103.00. Read the rest of this entry »
July 31st, 2014
The dollar held a firm tone on Thursday without being able extend gains from an over-bought position.
There was no surprise with the Fed policy decision late on Wednesday with a further US$10bn tapering of bond purchases to US$25bn per month. The FOMC statement did make comments on the economy being stronger while references to unemployment being at elevated levels was dropped. There was, however, still considerable caution with comments that considerable amount of slack in the labour market remained. Read the rest of this entry »
July 30th, 2014
The dollar advanced further during Wednesday as stronger US data boosted market sentiment for the second day running.
There was more bad fundamental data from Japan overnight with the 3.3% industrial production decline much weaker than expected and the fifth successive figure below expectations. The data will increase economic concerns and pressure on the Bank of Japan for more aggressive monetary policy which will tend to weaken the yen. USD/JPY initially edged higher to the 102.10 area ahead of key US events. Read the rest of this entry »