By Russell Glaser – Strong employment data from Australia helped to lift the Aussie dollar as the AUD/USD eyes the 1.00 level. An interest rate differential between Australia and the US has given traders reason to continue buying the Aussie Dollar. As the Fed mulls further easing of monetary policy the gains in the pair should continue.
Today’s Market Events:
GBP – MPC Rate Statement and Asset Purchase Facility – 11:00 GMT
Expectations: 0.5%, 200Bn. Previous: 0.5%, 200Bn.
Economists are not expecting any changes to British interest rates or to the levels of quantitative easing by the Bank of England. Inflation expectations and comments on the British government’s talk to lower government spending could make waves. The next target for the GBP/USD is the 1.6000.
EUR – Minimum Bid Rate – 11:45 GMT
Expectations: 1.00%. Previous: 1.00%.
No change is expected in the European Central Bank interest rate but President Trichet may put further support behind the euro while encouraging further buying. Now that the EUR/USD has taken out the March resistance at 1.3817, the 2010 high of 1.4578 may come into play.
USD – Unemployment Claims – 12:30 GMT
Expectations: 454K. Previous: 453K.
If yesterday’s ADP unemployment data was a preview of what the weekly unemployment numbers will look like, the dollar may be in for further selling today. The USD/JPY could continue to fall towards its all-time low of 79.70.
Forex Market Analysis provided by ForexYard.
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