Tag Archive: $AUD
FX Daily, September 22: Swiss Franc Strongest Currency Again
Once again the Swiss Franc was the strongest. The EUR/CHF depreciated to 1.0875. As said yesterday, the reasons: the Fed and the strong Swiss trade balance.
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FX Daily, September 20: The Swiss Franc Continues To Rise.
The trade balance express if a currency is overvalued or not. The Swiss trade surplus is constant or rather rising, hence the Swiss Franc is correctly valued or rather undervalued. And the franc continues to appreciate.
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FX Daily, September 19: Dollar Begins Important Week on Softer Note
The US dollar, which finished last week on a firm note, is under pressure to start the new week that features Bank of Japan and Federal Reserve meetings. The slighter stronger August CPI reading helped lift the greenback ahead of the weekend, but investors continue to see a low probability of a Fed hike this week.
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FX Daily, September 15: Early Update: Full Calendar but Little News
Looking at the diary, today is the most important day of the week. The Bank of England and the Swiss National Bank meet. The UK reports retail sales. EMU reports CPI figures. The US reports retail sales, industrial output, and two September Fed surveys. Yet the economic updates are unlikely change sentiment ahead of next week FOMC and BOJ meetings.
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FX Daily, September 14: Precarious Stabilization
Swiss ZEW expectations came in better than expected. The value was +2.7 instead of expected negative value. The US dollar advanced yesterday and is in narrow ranges with a mostly softer bias today. The exception is the Japanese yen. Japanese press have reported that more negative rates are under consideration may have contributed to the weakness of the yen.
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Thoughts on the Price Action
Global interest rates are rising. Something important is happening. It appears to be dollar positive.
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FX Weekly Preview: Capital Markets in the Week Ahead
Global bonds and global stocks ended last week on a weak note and this will likely carry into this week's activity. The Bank of England meets, but the data may be more important. Oil and commodity prices more generally look vulnerable, and this coupled with higher yields sapped the Australian ad Canadian dollar in the second half of last week.
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FX Daily, September 07: Dollar Stabilizes, but Hardly Recovers
Disappointing industrial output figures from Germany and UK are helping stabilize the US dollar after yesterday's shellacking. Investors have been fickle about the prospects for a rate hike this month, and the unexpected dramatic slide in the service spurred a downgrading of such expectations, and a flight out of the dollar. It was not simply a quest for yields, though that was part of it. Surely the yen and euro's strength is not a function of...
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FX Daily, September 6: Dollar Heavy in Quiet Markets
The US dollar is trading heavily against most of the major and emerging market currencies. However, the losses are modest, and the greenback remains within recent ranges. The Antipodean and Scandi bloc currencies are performing best.
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Services ISM Sends Greenback Reeling
ISM showed unexpected weakness in Aug non-mfg PMI. Markit measure slipped but not as much as ISM. Odds of a Sept Fed hike slip to about 15%. Watch trendline in Dollar Index near 94.45.
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FX Weekly Preview: Parsing Divergence: Focus Shifts from Fed to ECB
Net-net, the September Fed funds futures contract was little changed on the week. Four high-income central banks meet in the week ahead; the ECB is the only one in play. China accounted for a full three quarters of the US trade deficit in July.
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FX Daily, September 01: A Couple of Surprises to Start the New Month
The new month has begun with a couple of surprises. The biggest surprise has been the record jump in the UK manufacturing PMI to 53.3 from 48.3. A much smaller rebound was expected in August after the Brexit shock drop in July.
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FX Daily, August 29: Dollar Gains Extended, but Momentum Fades
The US dollar staged a strong pre-weekend rally on hints that the Fed will raise rates before the end of the year. There was initially follow through dollar buying in Asia before a more stable tone emerged in Europe, where London markets are closed for a bank holiday. The easing of the dollar’s upside momentum may set the stage for a bout of profit-taking later today and tomorrow.
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FX Daily, August 24: Narrowly Mixed Greenback in Summer Churn
The US dollar is going nowhere fast. It is narrowly mixed against the major currencies. The market awaits for fresh trading incentives, with much hope placed on Yellen's presentation at Jackson Hole at the end of the week. Is it too early to suggest that the build-up ahead of it is too much?
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FX Daily, August 23: Broadly Mixed Dollar in a Mostly Quiet Market
The US dollar is mostly little changed against the major, as befits a summer session.There are two exceptions.The first is the New Zealand dollar. Comments by the central bank's governor played down the need for urgent monetary action and suggested that the bottom of cycle may be near 1.75% for the cash rate, which currently sits at 2.0%.This means that a cut next month is unlikely. November appears to be a more likely timeframe.
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