Asia Session

A strong day for the currencies down under as the Aussie and Kiwi both soar and the US Dollar drops once again. The unchanged RBNZ rate decision that started the session off bright and early put a match to the rocket that was strapped to the back of the Kiwi Dollar, as the Reserve Bank Governor Bollard stated his case that the economy should be back on track by the end of this year. The NZD/USD as mentioned exploded from 0.6246 and by session's end had tapped a high of 0.6375 aided as well by a soft dollar and a higher risk appetite. Better than expected employment data out of Australia pushed the AUD/USD north more than a handle, from lows just under 0.8010 to later highs touching 0.8020. Even though the Nikkei was vacillating near the 10,000 level, it did get above it for the first time in almost 8 months, adding a spark to the risk appetite in Asia. As can be expected, AUD/JPY moved over a big figure to 79.60 and NZD/JPY did the same, topping out near 62.48 after a humble low of 61.34 as investors bought up the commodity based currencies.

Against the Euro, the Dollar, although not near yesterday's lows, began its descent in Asia after it posted a 1.3915 high in late NY trading. The EUR/USD pair then ploughed to just over 1.4060 by day's end. The Pound moved higher against the greenback as well, moving from 1.6340 to 1.6410 by late in the day. To add to the equation, USD/JPY sank from 98.30 to just under 97.75, as better than anticipated GDP data helped to boost the Japanese Yen. Many traders are contributing the Dollar's slide to tomorrow's US Treasury bond auction, as the Fed can't seem to print enough money to keep the bonds afloat. Traders are caught in a quandary as investors seem to want to wait it out for higher yields they believe are just down the road, thus putting the pressure on the buck until they decide it's time to put their money to work in Treasuries once again.

Upcoming Economic Data Releases (London Session) prior expected