FXstreet.com

Asia Market Update

1

0

Risk Aversion Slows Following the RBA's largest rate cut in 16 yrs

Tue, Oct 7 2008, 08:00 GMT
by Eben Esterhuizen

TradeTheNews.com


Trade The News

Real-time 24hr global markets news in both audio & text formats. Free Trial.

Forex: Major FX pairs remained rangebound for much of the Asian session before Reserve Bank of Australia delivered a shot heard around the world. In what is rumored to mark the start of a coordinated global easing, Aussie central bank surpassed consensus estimates of a 50bps cut, slashing overnight lending rates by 100 points to 6.00%. After initial knee-jerk selling in AUD that pushed AUDUSD toward critical 0.70 support levels, renewed risk appetite forces reversed major currency trends across the board. USD Dollar saw broad losses against the EUR, GBP, CHF, CAD, AUD, and NZD. Meanwhile, risk-gauging Japanese currency pared a full figure against the dollar, with USDJPY rallying above 103 handle. GBPJPY rose 300 pips in RBA aftermath above 181 figure and EURJPY broke above 140. Emerging Asian markets FX was mixed with USDSGD shedding a full figure before finding support just below 1.46 while USDTWD maintained dollar bullish tone.

- Asian Equities: Asian equities move higher across the board following the RBA's larger than expected rate cut. During the morning session, the Nikkei 225 declined by more than 5% and at one point moved below 10,000 for the first time since December 2003. However equities have since moved off of the session's worst levels. Declines on the Nikkei are being led by exporters. However, defensive buying was noted in the shares of food companies. Additionally, Japanese banks have moved sharply off of the session's worst levels. The S&P ASX 200 is higher by more than 2%, after trading sharply lower during the earlier parts of the session. Gains in Australia are being led by banks, property companies and miners. The Kospi is higher by more than 0.50% and also reversed the losses seen earlier during the session. In other Asian equities trading, the Shanghai Composite is lower by more than 1.5%, the Taiex is gaining by more than 0.50% and the Straits Times is gaining by close to 2.4%.

- Commodities: Crude oil prices are higher by more than 2%, tracking the stronger EUR and the rebound in S&P 500 futures. Additionally, it was reported in the press that Beijing planned to raise its prices for gasoline and diesel by 3-4%, in a move to help local refiners. Other factors that could be support oil prices include the approach of Tropical Storm Marco, which could become a hurricane before making landfall. Marco has formed in the Southern Gulf of Mexico near various Mexican oil fields and it has caused Mexico's Pemex to shut 6 of its wells on one of its gulf platforms. Spot Gold is little changed, after gaining more than $32 during the US session.


Archive

Trade The News, Inc.  | 228 Park Ave. South Suite 9465, New York 10003 United States
https://www.tradethenews.com/FreeTrial/Default.aspx?fxst | sales@tradethenews.com

Legal disclaimer and risk disclosure

All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.

Related reports

Market Session Recaps - London Session by FOREX.com
Tue, Nov 24 2009, 11:33 GMT

Daily FX Report - The AUD/JPY fell to 81.85 and the NZD/JPY fell to 64.80 by Varengold Wertpapierhandelsbank AG
Tue, Nov 24 2009, 11:04 GMT

Timeframe Breakdowns - EURUSD / EURGBP / EURJPY / GBPUSD by Turtle Futures
Tue, Nov 24 2009, 09:19 GMT

Daily World Market Update - Dollar's Day of Data; GDP, Consumer Confidence, Fed Minutes by World First UK Ltd
Tue, Nov 24 2009, 08:39 GMT

Today's Trading Signals by Financial Trend Analysis
Tue, Nov 24 2009, 08:37 GMT

audusd, rba, eurjpy, asia, gbpjpy

View All

Related content

CURRENCIES: Dollar Up; Euro Trims Losses On German Ifo Rise
Dow Jones | Tue, Nov 24 2009, 12:55 GMT

UPDATE: Asian Shrs End Lower;Shanghai Stocks Tank 3.5%
Dow Jones | Tue, Nov 24 2009, 11:05 GMT

Asian Shares End Lower; Shanghai Stocks Tank 3.5%
Dow Jones | Tue, Nov 24 2009, 10:23 GMT

CURRENCIES: Dollar Gains On Euro In Asian Trading
Dow Jones | Tue, Nov 24 2009, 09:32 GMT

Forex: AUD/USD: Aussie, capped at 0.9275 declines to 0.9130 low
FXstreet.com | Tue, Nov 24 2009, 08:57 GMT

audusd, rba, eurjpy, asia, gbpjpy

View All

Interested in forex trading? forex brokerage firms!


MG Financial Group
Contact the broker/FDM
Open a demo account
ACM Advanced Currency Markets SA
Contact the broker/FDM
Open a demo account
FXDD
Contact the broker/FDM
Open a demo account
Saxo Bank A/S
Contact the broker/FDM
Open a demo account
MF Global FXA Securities Ltd.
Contact the broker/FDM
Open a demo account

GET CASH BACK FOR YOUR TRADES!   Learn more about the Pip Rebate Program

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.

Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

©2009 "FXstreet.com. The Forex Market" All Rights Reserved.