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RBA cuts it rate by 0.25 % to 7.00 %
Tue, Sep 2 2008, 08:29 GMT
by Varengold Bank Research Team
Varengold Wertpapierhandelsbank AG
Good morning from wonderful Hamburg and welcome to the Varengold Daily FX Report. RBA cuts it rate by 0.25 % to 7.00 % and said that it looks like the economy will slow be enough to bring inflation down over the time. The AUD/USD jumped 0.2 % to a session high of 0.8520.
Market review
It will not be easy to avoid a global economic recession, even if histrotically growth remains at a high level, the BOJ Governor Shirakawa said. In a speech to business leaders in central Japan he adumbrates that Japan´s economy is likely to recover to a moderate growth, but he warned about the risk of ongoing period of easy monetary policy by the central bank. However the USD/JPY is up from its early low at 107.77 to the day´s peak of 108.54. Some traders guess Japanese corporates and investors opened buy positions before the 01:00 GMT Tokyo corporate fixing. The EUR/JPY is 0.2 % up to 158.28 from a low at 157.12. The GBP/JPY recovered sharply from a low at 192.72 to 194.44.
The EUR and GBP are still vulnerable due to the negative growths in euro zone and UK economies. The EUR/USD hits a 7-month low at 1.4556 and the GBP/USD hits a 2-year low at 1.7850 as EU leaders agreed to postpone talks with russia on a new intended partnership pact on September 15th-16th if moscow hasn’t withdrawn its troops from Georgia. The EUR/USD was down 0.2 % at 1.4578 on Monday. The GBP/USD crawls back to 1.7932 and was down 0.4 % yesterday. The EUR/GBP traded around 0.8132 after reaching a lifetime high at 0.8164.
USD/CHF
From the middle of April to the end of July the USD/CHF traded in a sideways trend channel with a support at pari and a resistance level around 1.0553. After its break trough the resistance the market reached its level from February at 1.11 again. If the market doesn’t break trough this new resistance we could expect a bearish trend development.
GBP/AUD
As expected the GBP/AUD has shown a bearish trend since it touched the resistence level at 2.19. This recovery shows a similar move like in April. Should the market break trough the 2.093 support level it will be the twice entry to the old horizontal trend channel with a support at 2.04 and we could expect a further downward trend movement.
Published on Tue, Sep 2 2008, 08:55 GMT
Archive
- The JPY gained against a basket of major currencies
Published On Mon, Dec 1 2008, 11:44 GMT - The USD headed for its biggest weekly decline in almost three years against the EUR
Published On Fri, Nov 28 2008, 09:09 GMT - The EUR/USD was back again above the 1.29 level
Published On Thu, Nov 27 2008, 09:08 GMT - The JPY has gained against the EUR
Published On Wed, Nov 26 2008, 08:37 GMT - Yesterday the EUR/USD rose 2.8 %
Published On Tue, Nov 25 2008, 09:49 GMT
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