Forex Signals

By MoneyMorning.com.au
Ratings agency, Standard & Poor’s this week downgraded the big four Aussie banks.
How did the markets react? Was there massive selling? More ‘short sells’ than normal?
No. By lunch time yesterday, all four big banks were higher.
It was as if traders shook off S&P’s bank ratings cut. And saw it as a reason to [...]

The Australian dollar “Aussie” has moved back to parity with USD in a sign of things to come.  The markets have been on edge for some time due to the Euro debt crisis but are looking for a “Santa Claus” rally into the close of the year.  With the EU Finance Minister meeting taking place [...]

“Never stand begging for that which you have the power to earn.” ~ Miguel de Cervantes Good morning. The dollar is pulling back as risk trade returns – both AUDUSD and AUDJPY recovering some of last week’s losses. The euro is following but the gains remain modest so far. Here’s a bunch of charts to start [...]

There is no greater proxy for risk in the forex market than the Australian dollar (AUD) as the interest offered in Australia and its liquidity make it desirable for carry trades.  Recent selling in the Aussie vs. USD has pushed it lower to just above parity with USD as the risk emanating from the Euro [...]

The Australian Dollar (AUD) has pulled back from yesterday’s highs just below 1.05 vs. USD after CPI data came in lower than expected showing that inflation may be tame.  The YoY Trimmed Mean index came in at 2.3% vs,. an expected 2.7%, with the Weighted Median  figure coming in at 2.6% vs. an also expected [...]

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"Love, built on beauty, soon as beauty, dies.”
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Commentary & Analysis
Aussie premium precariously perched on the edge of a copper caldron?
I keep thinking that any day now the Australian dollar will take a very deep dirt nap. My pecking away has been rewarded at times, but my big spot FX bets (those [...]

The Australian dollar (AUD) is a desired currency for the the interest that is currently paid and is a favorite of carry-traders when risk appetite is high.  Conversly, when risk aversion is high the Aussie usually gets sold off despite the underlying fundamentals of the Australian economy.
The chaft below shows that we have a potential [...]

As we predicted on Monday, the Aussie has broken out vs. USD and is now trading firmly above parity as risk appetite has returned to the markets.  Global stocks and commodities are up as the marekt believes that a resolution to the Euro debt crisis is near.
In addition, a strengthening Chinese Yuan may actually be [...]

The Australian dollar is approaching parity again with USD as risk appetite has returned to the market on news that there may be a solution to the Euro debt crisis by the end of the month.  At least that’s the hope and the word coming out of the Euro zone.  But there is more to [...]

The Australian dollar (AUD) has tanked on risk aversion due to yesterday’s Fed announcement of “Operation Twist” which has caused the US dollar to strengthen as it sent investors running from the long bond.  The correlative effects of the strengthening US dollar has induced world market selling, led by stocks and commodities. 
Overnight, Asian stock indices were [...]