Tuesday, 01 November 2011.

AUDUSD

Higher yielding currencies have continued to show signs of weakness as investors continue to stress about the state of the global economy.

The AUDUSD (see above chart) has broken support levels of 1.0500 after the Reserve Bank of Australia announced that the board would lower the official cash rate for the first time by 25 basis points to 4.5 per cent. Governor Glenn Stevens was quoted as saying that “with inflation now likely to be close to target and confidence subdued outside the resource sector the time is right for the cut.  The AUDUSD has traded down from highs of 1.0568 to recent lows of 1.0462.

The yen has fell for the second straight day against both the euro and the USD on prospects Japan is ready for sustained intervention to weaken its currency and support an export led recovery. USDJPY opened the session at 78.19 and spiked to highs of 78.96 before falling in late trade.

The Canadian dollar has been weak during the Asian session as concerns that the European leaders will struggle to rein in the regions debt crisis eroding risk appetite. USDCAD has traded up from lows of 0.9975 to recent highs of 1.0015.

CURRENCIES
	Last Traded
AUDUSD	1.0468
EURUSD	1.3825
GBPUSD	1.6053
USDJPY	78.20

Source
Bloomberg and

Dow Jones Newswire

Friday, 28 October 2011.

audusd

Both the USD and yen are heading for weekly declines against the majority of their major trading counterparts as the European proposal to end the area’s sovereign debt crisis causes a global rally
in stocks dampening the demand for safe haven currencies.

The euro has traded down from four week highs against both the yen and USD after the agreement by the European leaders to accept write downs on the Greek debt. The EURUSD has traded down from highs of
1.4200 to recent lows of 1.4166.

The AUDUSD (see above chart) has been reasonably muted during the Asian session on speculation that the Reserve Bank of Australia will cut interest rates this coming Tuesday. The AUDUSD has traded
down from highs of 1.0754 to lows of 1.0700.

USDJPY traded down from highs of 76.03 at the beginning of the session to recent lows after a report  released earlier in the session showed that Japan’s industrial production slid more than analysts forecast in September showing the threat that the gains on the currency poses for major exporters in the country.

The NZDUSD has traded down from highs of 0.8243 to lows of 0.8183 as the local equity market slides from overnight highs.

CURRENCIES
	Last Traded
AUDUSD	1.0692
EURUSD	1.4174
GBPUSD	1.6089
USDJPY	75.88

Source Bloomberg and

Dow Jones Newswire

Monday, 31 October 2011.

USDJPY

Higher yielding currencies have been weak during the Asian session as the Bank of Japan Intervenes to weaken the yen and analysts predict that the rescue plan put together by the European Union may fail to
contain the sovereign debt crisis as slowing economic growth will reduce the ability of countries to reduce their debt levels.

The Australian dollar has declined against the majority of its trading counterparts ahead of the RBA rate announcement where analysts predict that the RBA will cut rates by 25 basis points to 4.75 per cent. The AUDUSD has traded down from 1.0697 to lows of 1.0549

The yen has plunged during the Asian session after Japanese Finance Minister Jun Azumi said that the government unilaterally intervened in the foreign exchange markets, he was quoted saying that “I’ve
repeated said that we’ll take bold action against speculative moves in the markets. USDJPY (see above chart) sank as much as 4.89 per cent and reached 79.50.

The New Zealand dollar has declined against the majority of its trading counterparts as demand for higher yielding risky assets subsided before a report that analysts predict will show that business activity in the US has weakened

CURRENCIES
	Last Traded
AUDUSD	1.0534
EURUSD	1.4032
GBPUSD	1.5990
USDJPY	79.20

Source Bloomberg and

Dow Jones Newswire

Thursday, 27 October 2011.

EURUSD

The higher yielding assets have seen some solid buying during the Asian session after the European lawmakers reached a broad agreement on the future of Greece.

The euro has risen against all of its trading counterparts today after Germanys Merkel announced a deal in which will see the private owners of Greek bonds accept a 50 per cent write down on their investment which will reduce Greek debt by 100 Billion Euros. French President Nicolas Sarkozy was quoted saying this is result will relieve the whole world that was expecting a decision that was strong from the Eurozone. The EURUSD (see above chart) traded up from lows of 1.3864 prior to the announcement to highs of 1.3994.

The Aussie dollar has gained against all of its 16 major trading counterparts as sentiment improves on the Euro deal, increasing the demand for the higher yielding currency. The AUDJPY has traded up from lows of 79.12 to recent highs of 79.79.

The Canadian dollar has traded above parity with the USD on the back of the European leaders reaching an accord. The USDCAD has traded down from highs of 1.0050 at the beginning of the session and recently traded as low as 0.9995.

The NZDUSD has continued to strengthen today after early in the session the Reserve Bank of New Zealand Governor All Bollard said that that rate rises may be required in the near future. The NZDUSD has recently
traded as high as 0.8060.

CURRENCIES
	Last Traded
AUDUSD	1.0480
EURUSD	1.3959
GBPUSD	1.6005
USDJPY	76.10

Source Bloomberg and

Dow Jones Newswire

Wednesday, 26 October 2011.

AUDUSD

Investors are again looking to the yen as a safe haven ahead of the European summit later in the trading session. USDJPY is trading near the post World War II lows of 75.76 after Finance Minister Jun Azumi said today that his department will take decisive measures to stem the yen’s rise.

The AUDUSD (see above chart) has dropped over 50 points from highs of 1.0437 to lows of 1.0358 after the Bureau of Statistics released numbers that showed that core inflation unexpectedly dropped to a 2.3 per cent annual pace last quarter sending investors to sell the local currency in anticipation that the Reserve Bank of Australia will cut interest rates next week.

The EURUSD has been relatively muted range trading between highs of 1.3939 and lows of 1.3893 ahead of the emergency summit being held to reach an agreement on the measures to solve the region’s debt issues.

The Canadian dollar has been steady against the majority of its trading counterparts today after being weak overnight after the Bank of Canada lowered its growth and inflation forecasts. After trading up from below 1.0000 overnight the USDCAD has come off Asian session highs of 1.0178 to recent lows of 1.0144

CURRENCIES
	Last Traded
AUDUSD	1.0362
EURUSD	1.3919
GBPUSD	1.6022
USDJPY	76.04

Source Bloomberg and

Dow Jones Newswire

Tuesday, 25 October 2011.

NZDUSD

The higher yielding currencies are mostly higher during the Asian session helped by optimistic rumours regarding the euro bailout and Greece.

The NZD declined for the first day in the last three against the majority of its 16 major trading counterparts during the Asian session after Statistics New Zealand released CPI data which showed that inflation slowed to 0.4 per cent which was more than analysts forecasted. These numbers support growing speculation that the Reserve Bank of New Zealand will hold its benchmark interest rate at 2.5 per cent this coming Thursday. The NZDUSD (see above chart) traded down from highs of 0.8079 at the beginning of the session to lows of 0.8034.

The AUDUSD traded up from lows of 1.0448 to highs of 1.0492 after the Reserve Bank of Australia Deputy Governor Ric Battellino signaled that there is no urgency to lower Australian interest rate ahead of the banks next policy meeting at the beginning of November.

The euro is off slightly off against the yen for the first time in five days ahead of two reports that analysts predict will show that consumer confidence in both Germany and France are deteriorating. The EURJPY has traded down from highs of 106.13 to as lows as 105.76.

CURRENCIES
	Last Traded
AUDUSD	1.0467
EURUSD	1.3904
GBPUSD	1.5989
USDJPY	76.12

Source Bloomberg and

Dow Jones Newswire

Monday, 24 October 2011.

AUDUSD

Higher yielding currencies gapped to the downside for the start of the trading week following the European Union crisis meeting where they decided not to tap the ECB balance sheet.

After a relatively soft open the AUDUSD continued to slide to lows of 1.0315 following a government report that showed that the Australian producer price inflation rose less than expected to a seasonally adjusted 0.6 per cent in the last quarter, many analysts predict these numbers will open the door for the RBA to cut the overnight interest rates. Late in the Asian session the AUDUSD has recovered somewhat and recently traded up to highs of 1.0418 following positive HSBC Flash PMI numbers.

The EURUSD opened up weaker at 1.3834 following the EU economic summit during the weekend where leaders explored increasing the firepower of EFSF and ensuring that banks have higher levels of capital. The EURUSD has recently traded up to intraday highs of 1.3882.

The yen is mixed against it most of its trading counterparts following official data released showed that Japan’s trade balance fell less than expected last month. USDJPY traded up from lows of 76.17 to highs 76.49.

CURRENCIES
	Last Traded
AUDUSD	1.0389
EURUSD	1.3884
GBPUSD	1.5962
USDJPY	76.22

Source Bloomberg and

Dow Jones Newswire

Friday, 21 October 2011.

USDCHF

The currency markets have been relatively jumpy in low volume trading today with many investors awaiting the outcome of this weekend meeting with the European lawmakers to get a clear direction.

The Swiss franc has seen some solid buying against both the euro and the USD triggering stops on the way through as investor confidence seems to be fading in the ability of the European leaders to resolve
the regions debt crisis, hence increasing the demand for the safe haven assets. The USDCHF (see above chart) has traded down from highs of 0.8951 to lows of 0.8849 before recovering to current levels of 0.8891.

Both the Aussie and the Kiwi are set for their biggest weekly drops against the yen in over one month as investors looks to get into the yen as a safe haven asset. The NZDJPY has traded down from recent highs 61.13 midway through the morning session to recent lows of 60.78.

The AUDUSD is has traded down from highs 1.0264 to recent lows of 1.0204 following the local equity market south along with the commodity prices.

CURRENCIES
	Last Traded
AUDUSD	1.0220
EURUSD	1.3780
GBPUSD	1.5799
USDJPY	76.79

Source Bloomberg and

Dow Jones Newswire

Thursday, 20 October 2011.

EURJPY

Investors have been selling higher yielding risky assets and purchasing both the yen and USD during the Asian session after a split has emerged between the Germans and French lawmakers ahead of the
meeting during the weekend.
The euro is trading off against the majority of its trading counterparts in the Asian session after the European Union lawyers axed the current proposal to use the rescue fund to guarantee bonds a plan would have allowed the EUR440 billion European Financial Stability Facility to insure much more debt. The lawyers said it violated a prohibition on using the fund for direct guarantees. European officials are now offering to draw on the fund for collateral when debt-troubled countries need to borrow.

EURJPY (see above chart) has traded down from highs of 105.90 to as lows as 105.24. At time of writing this report it was sitting at 105.39.

The AUDUSD is currently off 0.4 per cent for the session after trading down from highs of 1.0266 to as low as 1.0174, mirroring the local equity market.

The NZDUSD has traded down from highs of 0.7943 to lows of 0.7889 during the Asian session on negative investor sentiment.

There is two key numbers out later this evening in including the U.K. retail sales and euro-zone consumer confidence, followed by the Philadelphia Federal business outlook survey.

CURRENCIES
	Last Traded
AUDUSD	1.0192
EURUSD	1.3723
GBPUSD	1.5741
USDJPY	76.75

Source Bloomberg and

Dow Jones Newswire

Wednesday, 19 October 2011.

AUDUSD

The higher yielding assets have seen some recent buying late in the Asian trade after a weak start to the session following a report released in a UK newspaper stating that the European lawmakers were
going to top up their war chest to EUR2 trillion to fight the sovereign debt crisis.

The euro has been strong against the majority of trading counterparts after German Chancellor Angela Merkel and French President Nicolas Sarkozy pledged to fix European debt crisis this weekend in
Cannes. The EURUSD has traded up from lows of 1.3727 to recent highs of 1.3807 where is has run into some resistance.

The Australian dollar has been strong in the after session against all trading counterpart on positive traders sentiment. The AUDUSD (see above chart) has recovered from lows of 1.0230 and traded as high as 1.0327.

The New Zealand is slightly higher against the majority of it trading counterparts although remains range
bound ahead of Sunday’s European summit. The NZDUSD has bounced off lows of 0.7929 and at time of writing this report was sitting on the session highs of 0.7971.

CURRENCIES
	Last Traded
AUDUSD	1.0307
EURUSD	1.3800
GBPUSD	1.5741
USDJPY	76.71

Source Bloomberg and

Dow Jones Newswire