Currency Trading Commentary: March 28

Currency Trading Commentary: March 28

Currency Trading Commentary: March 28

After some solid gains in the previous session, global equities and commodities were softer overnight.

 

As such, risk currencies were also weaker.

 

The Aussie dollar was no exception, with our commodity based currency slipping against most of its major peers.

 

The AUDUSD shed 0.7% to settle at 1.0460 at this morning’s NY close, whilst the AUDJPY shed 0.3%, to 87.02.

 

During today’s Asian trading the Aussie and Kiwi dollars have slipped further as Asian stocks have extended the global retreat, sapping demand for higher-yielding assets.

 

Both the AUD and NZD are on track for their first monthly retreat this year amid concerns Chinese manufacturing is slowing.

Turning back to last night’s action, the greenback rose against the euro and the yen as US economic data indicated a strengthening recovery, undermining the case for more stimulus from the Federal Reserve.

The US dollar gained from the lowest level this month against its 17-nation European counterpart as reports showed home-prices declines slowed and consumer confidence this month stayed close to the highest level in a year.

The Dollar Index (Dixie, DXY) advanced as treasuries rose after the highest pre-auction yields since July spurred stronger-than-average demand at a government sale of $35 billion in two-year notes.

The measure had dropped the past two days amid speculation the Fed will start a third round of quantitative easing, or QE3.

Elsewhere, The Canadian loonie softened against all but two of its 16 most-traded peers as traders exited positions in higher-risk assets and Ontario, the nation’s largest province, predicted a reduced deficit next fiscal year.

 

The euro held near a one-month high against the greenback before a European finance ministers’ meeting this week where they are expected to agree to bolster the region’s debt-crisis firewall

 

Finally, the yen gained versus all of its major counterparts as investors flocked to refuge assets amid a decline in Asian equities.

FREE FX Recommendations, Click Now

Speak Your Mind

*

Disclaimer: The content of this blog does not constitute a recommendation nor does it take into account your investment objectives, financial situation nor particular needs. Before acquiring or using any of Australian Stock Report's products, you should obtain and consider our Financial Services Guide. Australian Stock Report Ltd (ACN 106 863 978) is licensed as an Australian Financial Services Licensee pursuant to section 913B of the Corporations Act 2001. AFS Licence 301682. Any content within this email remains the property of Australian Stock Report and should not be reproduced without the consent of Australian Stock Report.