Source: ForexYard
The Australian dollar saw significant gains against the JPY last night, following the release of positive Chinese manufacturing data which boosted investor confidence in the global economic recovery. The AUD/JPY advanced close to 100 pips following the news, eventually reaching as high as 94.02.
The Chinese news also helped the EUR/USD gain more than 40 pips. The pair, which peaked at 1.3346, saw a slight downward correction during the early morning session and is currently trading at 1.3325.
Signs of progress in negotiations between US lawmakers to increase the federal government’s borrowing limit caused gold prices to continue falling last night. The precious metal lost more than $8 an ounce during the Asian session, and is currently trading at $1680.
Main News for Today
German Flash Manufacturing PMI- 08:30 GMT
• Forecasted to come in slightly higher than last month
• If the indicator comes in above the expected 47.1, the euro could see upward movement during mid-day trading
US Unemployment Claims- 13:00 GMT
• Forecasted to come in slightly higher than last week’s, which if true, would be a sign that the employment situation in the US is getting worse
• If the indicator comes in above the forecasted 359K, the dollar could take losses during afternoon trading
US Crude Oil Inventories- 16:00 GMT
• Forecasted to come in significantly higher than last week’s result, which if true, would be a sign of decreased demand in the US and may cause oil prices to turn bearish
Read more forex news on our forex blog
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.
