Month: April 2012

London Gold Market Report
from Adrian Ash
BullionVault
Thurs 5 April, 08:55 EST

GOLD and SILVER ticked higher from Wednesday evening’s 3-month lows in London on Thursday, going into the long Easter weekend with gold trading 0.7% higher against the US Dollar.

Silver bullion rallied 2.2% from last night’s low, but held one-third below the 3-decade peak near $50 per ounce hit at Easter 2011.

The single Euro currency meantime slid near $1.3050 – dropping 3¢ for the week – after Wednesday’s weak auction of new Spanish debt was followed on Thursday by news of a drop in Germany’s industrial output.

Losing 1.1% in gold bullion terms on Thursday, the Euro also dipped briefly through CHF1.20 – the floor set by the Swiss National Bank last September, and since defended by selling Francs to buy Euros in a bid to maintain Switzerland’s export competitiveness.

Ahead of the 4-day Easter weekend – in which London’s gold trading banks will stay closed until Tuesday – Spanish bond yields jumped again, erasing the dip seen since the European Central Bank began lending Eurozone banks more than €1 trillion in December.

The Dax index of German stocks today slid 0.9%, extending its Easter-week drop to 3.2%.

Bullion analysts and professionals trading gold have “turned bearish for the first time this year,” according to Bloomberg’s latest weekly survey.

“Fifteen of 29 analysts surveyed by Bloomberg expect prices to decline next week and five were neutral,” says the newswire, “the highest proportion since Dec. 30.”

The final week of Dec. 2011 saw gold begin a 17% rally over the following 9 weeks.

“We would not be surprised to see a move down in gold,” says a note from bullion-bank Scotia Mocatta today, “but as concerns about Europe’s debt are resurfacing, the downside may be limited and safe-haven buying may soon return with vigour.”

“Asian interest in precious metals remained severely lacking [this morning],” says Standard Bank’s London team. “Nevertheless, there was enough interest again…to keep prices relatively stable.”

Over in Vietnam today, and “after a few dozen drafts” reports TuoitreNews.vn, “the final decree on the management of gold trading activities, a very important document with a strong influence on the domestic gold market, has been signed by the Prime Minister.”

Hanoi’s new decree brings together Vietnam’s piecemeal controls on gold trading of 2011, banning the use of gold as money, such as making large payments in real estate deals, as well as manufacturing or trading gold without the requisite licenses.

Across in India – the world’s No.1 private gold consumer, where a 3-week long strike by jewelers protesting against a series of tax and duty hikes turned violent on Monday, with protesters clashing with police in Mumbai and disrupting trains in Ghaziabad – commercial banks now have to submit a raft of new monthly and twice-annual reports to the Reserve Bank of India stating the volume and value of their gold imports.

“We all know that gold is a deep-rooted part of our cultural heritage,” says Mehul Choksi, chairman and managing director of Mumbai-based Gitanjali Gems Ltd.

“[Gold] also serves as a highly liquid form of savings and a hedge against inflation, having appreciated much faster than other asset classes.

“Naturally, we cannot expect this demand to suddenly disappear. And, since India produces virtually no gold, demand has to be met entirely through imports – legal or illegal!”

“The four per cent duty might be perceived as an irritant,” counters T R Rustagi, former joint secretary of the Central Board of Excise & Customs, also writing in the Business Standard. “But arguably it cannot be the cause for smuggling.

“Its avoidance may not be lucrative enough for smugglers to take risks,” says Rustagi, contrasting today’s 4% duty with the 15% in place when India repealed its Gold Control Act, liberalizing the legal import of gold bullion  in 1990.

“We are expecting [finance minister] Pranab Mukherjee to offer a feasible solution very soon,” says Bacchraj Bamalwa, chairman of the Gems & Jewellery Federation of India, warning that 1,000 crore Rupees in gold trading – equal to some $200m – is being lost by the industry each day.

Reports from the Bombay Bullion Association said this week that gold imports to India have fallen by one-half so far in 2012 from the start of 2011.

India’s second-largest jewelry business by stock-market capitalization, Gitanjali’s share price has dropped 20% on the BSE since hitting a four-year high in early Feb.

Adrian Ash
BullionVault

Gold price chart, no delay   |   Buy gold online at live prices

Adrian Ash is head of research at BullionVault, the secure, low-cost gold and silver market for private investors online, where you can buy gold today vaulted in Zurich on $3 spreads and 0.8% dealing fees.

(c) BullionVault 2012

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.

Source: ForexYard

The mighty greenback has been trading up against most of its currency counterparts this week, the Japanese Yen being the only Major to show some fight.

Claims for U.S unemployment dropped last week to reach its lowest level in four years, showing further indication of a strengthening economy.Jobless Claims dropped 6,000 to the figure of 357,000 for the week ended March 31, this happens to be the fewest since April 2008.

70 percent of the economy relies on Consumer spending, and there have been a number of reports and positive figures that have boosted consumer confidence in the U.S. Rising stock prices,improvements to the labor market and easier credit are responsible for boosting consumer confidence in the United States.

The most highly anticipated report on the economic calendar, the Non-Farm Payrolls report will be released on Friday.The forecast  figure for the report is 211,000 whilst the previous outcome was 227,000.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

Article by Investment U

Karim's book outlines a practical approach to frontier market investing. Buy stocks and ETF's (like NYSE:VNM and AMEX:IF) low and sell them high. Find opportunities in times of crisis, and values when other investors are fearful.

I’m a voracious reader, but have an odd habit.

Instead of reading a new book from beginning to end, I normally have four or five books going at once. The reason is that I get a bit bored after a few chapters and like to mix things up.

But sometimes a book is so interesting, I go full steam and finish the book one, two, three.

This is the case with Karim Rahemtulla’s new book, Where in the World Should I Invest: An Insider’s Guide to Making Money Around the Globe.

Most investment books are long on figures and short on entertainment. Karim has pulled off a neat trick combining hard facts with an informal, insider-on-the-ground investment tour of emerging and frontier markets around the world. And he does it in a vivid conversational style.

You will become Karim’s buddy as he takes you on a whirlwind insider tour of great cities like Istanbul, Saigon, Shanghai, Moscow, Bombay and Cairo, and then describes great growth opportunities in Singapore, Cambodia, Chile, Mexico, Panama and Argentina. You will not only learn firsthand what drives these markets, but also what the people, sites and culture are like. Even learn where to get the best bargains, the best food and the coolest places to hang your hat while in town.

This is important because when investing in emerging markets, the numbers are obviously important, but so is having a feel for a country’s culture, history, economy and stock market.

This book is also well worth reading for the following three reasons:

• Nicely Balanced – Many so-called emerging market experts are always bullish and avoid the realities of investing in these frontier markets. While offering superior growth prospects, there are always two faces to emerging markets. The reality is that many emerging markets face the challenges of dysfunctional governments, corruption, intractable poverty and volatility. Karim points out all the opportunities, but is frank on each market’s shortcomings.

• Well Organized – Most investment books drown the reader with information without any guidance on how to take action. Karim sums up his discussion of each market with a snappy summing up that highlights strengths, weaknesses, opportunities and threats. I have used a similar strategy I call a “balance sheet” approach looking at a market’s assets and liabilities.

• Smart Strategy – I couldn’t agree more with many of the book’s tips about how to best capture growth while managing risk. First, a trading approach will work far better than buy and hold. Second, because many markets (China and Brazil are exceptions) offer only a few companies listed on U.S. markets, blending company stocks with country-specific exchange-traded funds (ETFs) represents a smart strategy for most investors. Karim highlights the best of both as he roams the globe looking for adventure and profits. Third, by far the best time to make a killing in these markets is when they’re in the midst of a crisis. Next best is when the market is just out of favor, and down and out.

An Example…

A good example of this strategy is Vietnam, or the Market Vectors Vietnam ETF (NYSE: VNM). This market lost almost half its value in 2011, but has snapped back 36% so far in 2012.

Vietnam seems to be Karim’s favorite pick in Southeast Asia because of its young and hard-working population, location at the center of this dynamic region, and its growing destination as a manufacturing center.

While all this rings true, I have a hard time getting beyond its authoritarian government with a bent towards central planning. My favorite in the region for some time has been the budding democracy of Indonesia, or the Aberdeen Indonesia Fund, Inc. (AMEX: IF). The Jakarta stock market has yielded an average annual return over the past decade of just over 25%.

I will recap my case for Indonesia next week when I profile the brand-spanking-new Van Eck Market Vectors Small-Cap Indonesia ETF (NYSE: IDXJ).

Most importantly, while I focus on emerging markets and have visited many of the countries that Karim discusses, I learned quite a bit from this book. It has already joined my emerging market reference library and will be consulted frequently.

I hope this book will encourage you to get out and visit these intriguing investment destinations. Reading this book is the next best thing.

Good Investing,

Carl Delfeld

Article by Investment U

Source: ForexYard

Both gold and silver showed sharp falls during yesterday’s trading largely due to the outcome of the FOMC Meeting Minutes. The two metal’s prices should also be affected by the results of the Non-farm payrolls coming out tomorrow after the ADP non-farm rose by 209,000 for March.

A number of reports were released today including the Swiss National Bank Foreign Exchange Reserves, GB Bank Rate and the U.S Department of Labor Jobless Claims Weekly Update.A number of important news events are still due to come out today including the Canadian Ivey PMI.

So far in the month of April we have seen the two metals take a hit , largely due to a rising U.S Dollar.
Gold showed sharp falls of 3.46 percent to reach the low rate of $1,614 whilst silver nose-dived 6.68 percent to just over the $31.00 mark.

Another event influencing the price of the yellow metal remains to be the Strikes in India over Jewellery Tax, which moved into their 19th day on Wednesday. India is the world’s second largest consumer of Gold , so the metal will react to such news out of the gold-loving nation.

Friday’s highly anticipated Non-Farm Payrolls could possibly have an effect on the commodities markets if we happen to see unexpected figures.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

By TraderVox.com

Tradervox (Dublin) – Mario Draghi, the European Central Bank President has indicated that the bank is ready to act if the inflation risk persists. He said this as he assured investors that the ECB will continue with its stimulus plan until the economy completely recovers. Draghi told investors that all the necessary mechanisms are in place to counter any upside risk to stability of the economy. Draghi, as he addressed reporters in Frankfurt, indicated that ECB would hold interest rates at one percent but added that it was too early to talk about ECB exit strategy. He expressed concerns about the imminent risk in the economy as well as the inflation which has to be contained.

Europe is faced with a major debt crisis which has affected big economies such as Spain and Italy. Greece has had to be rescued twice from near default and unemployment rate in some European countries are hitting record high. As such, ECB is seen as trying to balance threat of inflation in leading economies such as Germany and the battle against the sovereign debt crisis. Draghi also said that the ECB is keeping a close eye on the energy prices and wages to read signs of any risk as early as possible. Apart from the sovereign debt crisis, Draghi assured investors that Euro area will have a modest growth that is anchored in long term inflation expectations which would keep price pressures limited.

Concerns about inflation have come at a time when ECB has pumped into the economy more than 1 trillion Euros in three year loans to financial institutions in the region as efforts to fight off any credit crunch. Mario Draghi said that the LTROs have avoided a major credit crunch in the region as he talked about the decision to keep the interest rates at a record low of 1 percent. However, he said that the meeting did not talk about another LTRO as this is a complex process and needs some time to be considered and to analyze the effects of the current LTRO.

Disclaimer
Tradervox.com is not giving advice nor is qualified or licensed to provide financial advice. You must seek guidance from your personal advisors before acting on this information. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. Opinions expressed at Tradervox.com are those of the individual authors and do not necessarily represent the opinion of Tradervox.com or its management. 

Article provided by TraderVox.com
Tradervox.com is a Forex News Portal that provides real-time news and analysis relating to the Currency Markets.
News and analysis are produced throughout the day by our in-house staff.
Follow us on twitter: www.twitter.com/tradervox

By The Sizemore Letter

One of my guilty pleasures is watching the Starz series Spartacus.  As a history buff, I am well aware that the producers take sweeping liberties with the historical facts surrounding the slave rebellion, but I’m ok with that.  It’s great entertainment.

But even as you cheer for Spartacus as his band of escaped gladiators bests the hapless  Romans in episode after episode,  you know that the story won’t end well.  The historical Spartacus didn’t topple the Roman Republic, nor did he liberate all of its slaves.  Though he enjoyed a good run, his rebellion was eventually put down by a professional army led by Crassus, and he was either killed in battle or lived the rest of his life on the run.  His body was never found.

Though the “blood and gore” in the capital markets are rhetorical and not literal as it is in the gladiatorial arena, the investment game is a spectator sport that can also turn your stomach at times.  In watching the moves of your fellow investors, you often instinctively know that certain trades are doomed to end very, very badly.  Whether it is Miami condos in 2005 or fly-by-night dot com stocks in 1999, you know that the investors buying in the late stages of a bull market are setting themselves up to be slaughtered when the market, like a Roman emperor deciding the fate of a defeated gladiator, gives the investment a thumbs down.

So, with that said, where might the greatest risks be today?

In my view, the riskiest major asset classes are U.S. Treasuries and the Japanese yen. 

Far from offering a “risk-free return” as financial theory would suggest, U.S. Treasuries now offer plenty of risk and virtually no return.  At time of writing, the 10-year Treasury note yields a pitiful 2.19%.  Even in a low-inflation environment (which I forecast), this is almost guaranteed to give you a negative real return over the life of the bond.  And if yields rise to a level I consider appropriate for this macro environment (say, 3.0-3.3%), investors would be looking at capital losses of roughly 10% on their “risk-free” bonds.   It is little wonder that Warren Buffett commented that bonds priced at current levels should come with warning labels on them.

Similarly, the Japanese yen is a ticking time bomb.  The yen’s strength in recent years has been due primarily to two factors:

1. Investors had a preference for anything that wasn’t related to Europe.
2. The yen’s appeal as a funding currency for the carry trade was reduced by the low yields on offer in the United States and elsewhere and by a general industry-wide move to deleverage.

Japan has debts that it simply does not have the ability to repay.  When Japanese market interest rates begin to rise—and when Japan is forced to turn to the international bond markets, they most assuredly will—the only way out will be through a hyperinflationary devaluation of the yen.  For investors accustomed to seeing deflation coming out of Japan, this will come as a bit of a shock (see “Japan Train Wreck Accelerating” for a longer explanation).

Interestingly, the objects of the last two bubbles—tech stocks and single-family homes—appear quite attractive at current prices.  I recently penned an article in MarketWatch singing the praises of rental houses as an investment for the next decade (see “Here’s the Catalyst for a Housing Rebound”), and I have also added a position to large-cap technology stocks in my Covestor Tactical ETF model.  Similarly, I continue to see value in the epicenter of last year’s turbulence, Europe.

But for the core on a long-term portfolio, I continue to recommend dividend-paying stocks.  At current prices and given the yields on offer by competition in the fixed-income market, dividend-paying stocks would appear to offer the best risk/return tradeoff for the remainder of the decade.

Charles Lewis Sizemore, CFA, is the editor of the Sizemore Investment Letter, and the chief investment officer of investments firm Sizemore Capital Management. Sign up for a FREE copy of his new special report: “Top 3 ETFs for Dividend-Hungry Investors”

Source: ForexYard

The US dollar saw significant gains against virtually all of its main currency rivals yesterday, as positive US fundamental data helped boost confidence in the US economy. The AUD/USD dropped to an 11-week low, while the EUR/USD has fallen close to 200 pips since Tuesday’s session. Today, investors will be eyeing the weekly US Unemployment Claims figure, which is forecasted to show additional gains in the American labor sector. If true, it may give the dollar an additional boost ahead of the release of tomorrow’s Non-Farm Payrolls data.

Economic News

USD – Greenback Rallies vs. Major Currency Rivals

The US dollar continued its bullish run throughout yesterday’s session, as the contrast between positive US fundamentals and negative global data continue to boost the greenback. The currency began its upward trend on Tuesday following the latest FOMC Meeting Minutes, which calmed investor fears that the Federal Reserve would initiate another round of quantitative easing in the near future. The news sent the dollar soaring against virtually all of its rivals, including the AUD, EUR and JPY.

Turning to today, traders will want to keep their eyes on the weekly US Unemployment Claims figure, scheduled to be released at 12:30 GMT. At the moment, analysts are predicting the figure to come in at 355K, which if true would signal additional growth in the US employment sector and may help the greenback ahead of Friday’s all-important US Non-Farm Payrolls figure.

Friday’s news is widely considered the most important indicator on the forex calendar, and major volatility can be expected following its release. The dollar has been benefiting from positive US news as of late. Providing the Non-Farms figure comes in as expected, the greenback may be able to extend its recent bullish trend.

EUR – Euro Continues to Tumble

The euro continued to fall throughout yesterday’s trading session, as a combination of negative euro-zone indicators continued to weigh down on the currency. Investor fears that the euro-zone has slipped back into recession combined with debt concerns out of Portugal and Spain have sent the common currency tumbling vs. the dollar. The EUR/USD has fallen close to 200 pips since it began falling on Tuesday. Similar losses were seen vs. the safe-haven Japanese yen.

Turning to today, traders will want to continue monitoring any news out of the euro-zone, particularly with regards to Portugal. The country is widely seen, along with Spain, as the most likely to require a restructuring of its debt. Any negative announcements with regards to its economy may weigh down on the euro. Additionally, should the weekly US Unemployment Claims figure show additional growth in the American labor sector, the dollar may be able to extend its bullish trend vs. the euro.

AUD – AUD/USD Falls to 11-Week Low

The AUD posted losses across the board during yesterday’s session following news that Australia was running a trade deficit. Analysts had been forecasting the Australian Trade Balance figure to come in at 1.12B, instead of its actual -0.48B. The news was followed by an announcement that the Royal Bank of Australia may cut national interest rates as early as next month. As a result, the AUD/USD tumbled to an 11-week low, while against the safe-haven JPY, the aussie fell over 100 pips.

Turning to today, a bank holiday in Australia means that any movements from the AUD are likely to be determined by news outside of the country. With investor sentiment still bearish toward the aussie, the currency may continue to fall against the greenback if positive US employment data shows additional gains in the American economy today.

Crude Oil – Strong US Dollar Causes Price of Oil to Drop

Following the US dollar’s broad gains during yesterday’s trading session, the price of crude oil extended its bearish run throughout the day. Dollar based commodities, like oil, typically fall when the USD is strong, because it makes them more expensive for international buyers. The price of crude slipped within reach of $103 a barrel yesterday. This week, the price of oil has fallen well over $2.

Turning to today, oil traders will want to continue monitoring US data, particularly the weekly Unemployment Claims figure, set to be released at 12:30 GMT. A positive result may lead to further losses for oil ahead of tomorrow’s all important Non-Farm Payrolls data.

Technical News

EUR/USD

Most long term technical indicators place this pair in neutral territory, meaning that no major market movements are expected at this time. That being said, traders will want to keep an eye on the weekly chart’s Relative Strength Index, which is currently near the overbought zone. Should the indicator go above 70, it may be a sign of impending downward movment.

GBP/USD

The weekly chart’s Williams Percent Range is currently at -20, which can be taken as a sign that this pair could see downward movement in the coming days. At the same time, most other long term indicators place this pair in neutral territory. Taking a wait and see approach may be the right choice.

USD/JPY

Both the Williams Percent Range and Relative Strength Index on the weekly chart are hovering close to the overbought zone, indicating that this pair could see downward movement in the near future. Traders may want to go short in their positions ahead of a possible bearish correction.

USD/CHF

According to the Bollinger Bands on the weekly chart, this pair could see a major price shift in the near future. The Williams Percent Range on the same chart is showing that the shift could be upwards. Going long may be a wise choice for this pair ahead of a possible upward breach.

The Wild Card

EUR/GBP

A bullish cross on the daily chart’s Slow Stochastic appears to be forming at this time, indicating that this pair could see upward movement in the near future. This theory is supported by the Williams Percent Range on the same chart, which has dropped below the -80 level. Forex traders may want to go long in their positions ahead of possible upward movement.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

By TraderVox.com

Tradervox (Dublin) – According to the minutes released yesterday on the Fed’s meeting on March 13, the Fed is comfortable with the current growth and sees no need for further easing unless the economy loses in current momentum. The Fed has injected $2.3 trillion of bonds in two monetary easing operations conducted between December 2008 and June 2011. The third round of quantitative easing would be considered if the economic recovery currently being experienced changed or the prices rose slower than the 2 percent target set by the Fed.

In the minutes released yesterday, some Fed officials signaled that it third round of quantitative easing would be necessary if the current economic conditions were to deteriorate or if the prices were to go up. This is unlike previous standing where some official of the FOMC indicated that the current economic status warranted for quantitative easing. Some analysts are claiming that the March 13 minutes indicates a reduced urgency to add stimulus as there were no sentiments showing the need to add stimulus with the current state of the economy. The minutes also confirmed Fed’s decision to keep interest rates low until late 2014.

Dennis Lockhart, the Atlanta Fed President, said in an interview that he was contented with the current state of the economy and that he would have to see severe change in circumstances for him to endorse and third round of quantitative easing. Lockhart is a voting member of FOMC on monetary policy issues. After the release of the minutes, the market reacted sharply with the dollar rising against major peers in the market.

Higher gas prices effects have been diminished by the positive employment reports with a March 30 Commerce Department report indicating that Americans increased their spending by most in seven months. The report showed that purchases increased by 0.8 percent in the month of February. It seems that the positive data from the US has started to ease the strong stand by Fed and traders and analysts are waiting to see whether the monetary policy will be changed be for the expected time.

Disclaimer
Tradervox.com is not giving advice nor is qualified or licensed to provide financial advice. You must seek guidance from your personal advisors before acting on this information. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. Opinions expressed at Tradervox.com are those of the individual authors and do not necessarily represent the opinion of Tradervox.com or its management. 

Article provided by TraderVox.com
Tradervox.com is a Forex News Portal that provides real-time news and analysis relating to the Currency Markets.
News and analysis are produced throughout the day by our in-house staff.
Follow us on twitter: www.twitter.com/tradervox

Video courtesy of ForexCT – A leading Australian forex broker, liscensed by the Australian Securities & Investments Commission, offers the MetaTrader4 and PROfit Platform to retail traders. Other services include Segregated Accounts, Trading workshops, Tutorials, and Commodities trading.

By TraderVox.com

Tradervox (Dublin) – The Australian dollar dropped to eleven-week low after the Reserve Bank of Australia pointed out that it would review the monetary policy downwards if the need arises. To add to the Aussie’s downward pressure, the country unexpectedly registered a trade deficit. The report of the Reserve Bank’s intention to cut interest rate hit the market after the member of RBA met on Tuesday. Positive reports from the US also pushed the Aussie further down against the greenback.  The New Zealand dollar also dropped against the US dollar ahead of a report expected to show a recovery in the US job market.

According to the Minutes of the Fed’s meeting released on Tuesday, the FOMC members are concerned about the US economy and they are still keeping the stimulus package on the table if the US economy lost momentum. The Fed also insisted on keeping the interest rates low up to late 2014. So far, the Fed has bought $2.3 trillion of bonds since December 2008 to June last year. This was done in two rounds and the third round is still an option for the Fed if the economy deteriorates.

In Australia, the RBA has been described as being on the “easing bias” by Lee Wai Tuck who is a Currency Strategist at Forecast Pte min Singapore. This is due to the concerns about the slowing exports that are pushing the Australian dollar down against major currencies.

The Aussie dropped by 0.4 percent against the US dollar to trade at $1.0289 after it had dropped to $1.0264, which is the lowest it has been since January 16 against the green back. The Aussie was also weak against the New Zealand dollar when it dropped to its weakest since October 6 exchanging at NZ$1.2576. The kiwi was weak against the dollar falling 0.2 percent to exchange at 81.74 US cents.

RBA reported that it would reassess its inflation outlook after seeing the forthcoming key data on prices. This would pave the way for a change in monetary policy if the prices’ data is not as expected. Currently, the RBA has left the interest rate at 4.25 percent.

Disclaimer
Tradervox.com is not giving advice nor is qualified or licensed to provide financial advice. You must seek guidance from your personal advisors before acting on this information. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. Opinions expressed at Tradervox.com are those of the individual authors and do not necessarily represent the opinion of Tradervox.com or its management. 

Article provided by TraderVox.com
Tradervox.com is a Forex News Portal that provides real-time news and analysis relating to the Currency Markets.
News and analysis are produced throughout the day by our in-house staff.
Follow us on twitter: www.twitter.com/tradervox