Riskier assets were initially back in vogue in Asia today, with the Aussie and Kiwi Dollars both pushing to new yearly highs at the expense of the US Dollar. AUD/USD began the day soaring to a 0.8660 high, but poor Retail Sales and Home Loans sent the pair on an initial 35 pip slide to 0.8615.
Subsequent selling sent the pair to 0.8585 lows for the session. NZD/USD was able to crest the 0.6990 level today, but looked to end the session closer to 0.6950 lows.
Many traders sell the dollar or yen in order to buy the higher yielding currencies from down under. The dollar was able to step back from recent lows today however, as the Euro, and Pound were mostly range bound in tepid trading. The EUR/USD looked to end the day unchanged near 1.4485 and GBP/USD was higher by 30 pips near 1.6515.
The Yen was relatively flat for the day amidst lackluster equity markets which showed minimal direction. USD/JPY failed to excite as it moved in a 20 pip range and ended the session unchanged near 92.35. The crosses were calm as well, mostly unchanged after a short lived pop early in the day. Gold was comfortable above the $1000 level in Asia, touching $1003.00 per ounce as a high as traders bought the precious metal in response to the floundering dollar. With many believing the global recovery is clearly on track, commodities were primed to make gains.
Early tomorrow we have the Reserve Bank of New Zealand's cash rate announcement which looks to remain unchanged at 2.50% but nonetheless could offer a spark or two with the following commentary.
Upcoming Economic Data Releases (London Session) prior expected
| 9/9/2009 | 6:00 | GE | Consumer Price Index (MoM) | AUG F | 0.20% | 0.20% |
| 9/9/2009 | 6:00 | GE | Consumer Price Index (YoY) | AUG F | 0.00% | 0.00% |
| 9/9/2009 | 6:00 | GE | CPI - EU Harmonised (MoM) | AUG F | 0.40% | 0.40% |
| 9/9/2009 | 6:00 | GE | CPI - EU Harmonised (YoY) | AUG F | 0.00% | 0.00% |
| 9/9/2009 | 6:00 | JN | Machine Tool Orders (YoY) | AUG P | -72.30% | - - |
| 9/9/2009 | 8:30 | UK | Visible Trade Balance GBP/Mn | JUL | -£6451 | -£6250 |
| 9/9/2009 | 8:30 | UK | Trade Balance Non EU GBP/Mn | JUL | -£3648 | -£3450 |
| 9/9/2009 | 8:30 | UK | Total Trade Balance (GBP/Mln) | JUL | -£2176 | -£2000 |
