Following weak US Job data, Australian dollar soared on the back of strong export numbers from China.
from MoneyTrading.com.au
During the thin trading conditions with Tokyo shut for a holiday, We expect the greenback to stay on the defensive as speculators cut long positions in the U.S. dollar following the U.S. jobs report. Data on Friday showed U.S. employers cut 85,000 jobs last month. November payrolls, however, were revised to show the economy actually added 4,000 jobs.
Interest rate futures pared expectations the Fed will raise benchmark short-term rates any time soon. July futures contract implied a 22 percent chance of a rate hike by mid-2010, down from around 40 percent before the jobs data.
The U.S. dollar's next litmus test is expected to come from U.S. earnings season which kicks off in earnest this week, U.S. retail sales, industrial production and inflation data.
The European Central Bank will also meet on Thursday and is largely expected to keep rates unchanged.
The Australian dollar rallied to a 26-month high versus the euro, rising to as high as 0.6442 euros. The Aussie also struck a fresh five-week high of $0.9318 buoyed by strong Chinese export numbers.
The Aussie was also bolstered by a rise in gold prices. Spot gold rose to a five-week high early on Monday.
We have our AUDUSD Long at 0.9142 still open.
During the thin trading conditions with Tokyo shut for a holiday, We expect the greenback to stay on the defensive as speculators cut long positions in the U.S. dollar following the U.S. jobs report. Data on Friday showed U.S. employers cut 85,000 jobs last month. November payrolls, however, were revised to show the economy actually added 4,000 jobs.
Interest rate futures pared expectations the Fed will raise benchmark short-term rates any time soon. July futures contract implied a 22 percent chance of a rate hike by mid-2010, down from around 40 percent before the jobs data.
The U.S. dollar's next litmus test is expected to come from U.S. earnings season which kicks off in earnest this week, U.S. retail sales, industrial production and inflation data.
The European Central Bank will also meet on Thursday and is largely expected to keep rates unchanged.
The Australian dollar rallied to a 26-month high versus the euro, rising to as high as 0.6442 euros. The Aussie also struck a fresh five-week high of $0.9318 buoyed by strong Chinese export numbers.
The Aussie was also bolstered by a rise in gold prices. Spot gold rose to a five-week high early on Monday.
We have our AUDUSD Long at 0.9142 still open.
posted by Money Trading at
3:59 PM
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