The 20-day moving average had turned back bounces in the Australian dollar twice in November and twice in December. It stalled there again on Jan 2, but short through it on Jan 3. While the RSI and MACDs have turned up, we are suspicious of a bull trap. A break of the $0.9000-35 area would ease these suspicions and suggest scope toward $0.9150-$0.9200. On several occasions in recent weeks, the US dollar has tried establishing a foothold above CAD1.07, but for naught and frustrating ideas of a breakout.
Forex – Dollar gains on weak Chinese data, Bernanke comments
The single currency pulled away from a five-year peak of 145.675 yen set last Friday. Investors tend to flock to the yen in times of market stress. Asian shares outside Japan shed 1 percent as a slower China services survey prompted some caution but European markets made small gains and analysts said thin trade was making currencies more volatile. The 10-year U.S. Treasury yield also dipped back to levels below 3 percent, offering less support to the dollar. “January is a bit of a messy month for foreign exchange,” said Simon Smith, head of research at FxPro.
FOREX-Yen firms vs dollar and euro as investors shun risk
Stimulus tools such as monthly Fed asset purchases spur recovery by driving down interest rates, weakening the dollar in the process. “It is important to recognize that the potential signaling aspect of asset purchases depends on the broader economic and policy context. In particular, the [Fed’s] decision to modestly reduce the pace of asset purchases at its December meeting did not indicate any diminution of its commitment to maintain a highly accommodative monetary policy for as long as needed,” Bernanke said in prepared remarks of a speech he gave earlier Friday. The greenback was up against the pound, with GBP/USD down 0.26% at 1.6410. In the U.K., the Markit Economics research group earlier said the construction PMI fell to 62.1 in December from 62.6 in November. Analysts had expected internet the index to drop to 62.0 last month.
India’s forex reserves rise by $205 million
More The death of the rape victim in West Bengal’s Madhyamgram region took a new turn as it has been reported that the girl was killed by the accused after being gang raped twice. The girl confirmed it in her dying statement. Slamming the West Bengal Government, CPI(M) blamed the State Government and its machinery, including the police and health department for their negligence that led to the death of the girl. Date01-01-14, Duration1:45, Views654 Happy Birthday Gul Panag!