Wednesday March 1, 2006 - 10:44:15 GMT
Share This Story
INVESTICA Ltd - www.investica.co.uk
Offshore trends dominate AUD
The Australian dollar found support below the 0.7380 level and weaker than expected US data pushed the Australian dollar to highs above 0.7430 on Tuesday. The domestic GDP data was weaker than expected with a 0.5% increase for the fourth quarter of 2005 and a 2.7% annual increase. Weak trade hurt the data, but with firm investment offering support.
Domestic rates are likely to remain on hold in the short term, but with a tightening bias intact. The Australian dollar will be in a better position to appreciate if US interest rate expectations weaken, but a reduction in carry trades and reduced Japanese inflows still represents a considerable currency risk. Overall, the Australian dollar is likely to hit resistance close to 0.7450, but with good support above 0.7350 as international trends tend to dominate.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."