The Aussie Dollar remained poised to reach new yearly highs once again today as the US Dollar looked to be relegated to possible carry trade status. After the RBA gave a 0.25% boost to the Aussie interest rate yesterday, the new yearly highs just kept coming during New York trading, with a high water mark of 0.8920 becoming the new 13 month high for AUD/USD. The moves have come at the expense of the low yielding Greenback which has been the funding currency for those buying the Aussie. With the US interest rate at 0%-0.20% and the Australian Dollar yield an attractive 3.25% we might have a new carry trade on our hands. AUD/USD was not able to match its NY highs, topping out in Asia trade just shy of 0.8910 levels. AUD/NZD was steady near a 1.2100 median for the day.
With the BoE and the ECB rate decisions looming ahead, EUR/USD longs unwound some positions and a stop driven move dropped the pair to lows under 1.4685. After yesterday's dynamic move by the RBA as they became the first G-20 nation to raise rates, some traders have a less cavalier attitude with risk ahead of a rate decision. Both the BoE and the ECB are expected to leave rates unchanged. GBP/USD was a bit softer near 1.5880 by day's end.
USD/JPY caught some bids early as equities posted gains and the IMF stated that Chinese Growth looked solid, an 89.05 high and 88.65 low was the range for the day. Yen crosses drifted lower late in the session.
After a record breaking run to an all-time high of $1043.55 in New York, Spot Gold was range bound in Asia between the $1035.00 and $1042.00 region. Recent Dollar weakness has helped boost gold as an inflation hedge and alternative investment. Spot Silver hovered near the $17.35 level for the majority of trading today.
Upcoming Economic Data Releases (London Session) prior expected
| 10/7/2009 | 5:45 | SZ | Unemployment Rate | SEP | 3.80% | 3.90% |
| 10/7/2009 | 5:45 | SZ | Unemployment Rate (sa) | SEP | 4.00% | 4.10% |
| 10/7/2009 | 9:00 | EC | Euro-Zone GDP s.a. (QoQ) | 2Q F | -0.10% | -0.10% |
| 10/7/2009 | 9:00 | EC | Euro-Zone GDP s.a. (YoY) | 2Q F | -4.70% | -4.70% |
| 10/7/2009 | 9:00 | EC | Euro-Zone Household Cons (QoQ) | 2Q F | 0.20% | 0.20% |
| 10/7/2009 | 9:00 | EC | Euro-Zone Gross Fix Cap (QoQ) | 2Q F | -1.30% | -1.30% |
| 10/7/2009 | 9:00 | EC | Euro-Zone Govt Expend (QoQ) | 2Q F | 0.40% | 0.40% |
| 10/7/2009 | 9:30 | UK | BRC September Shop Price Index | 7-Oct | ||
| 10/7/2009 | 10:00 | GE | Factory Orders MoM (sa) | AUG | 3.50% | 1.10% |
| 10/7/2009 | 10:00 | GE | Factory Orders YoY (nsa) | AUG | -19.80% | -20.00% |
