Tuesday, 01 November 2011.
November 1, 2011 Leave a comment
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 |
|
|
AUDUSD |
1.0468 |
|
EURUSD |
1.3825 |
|
GBPUSD |
1.6053 |
|
USDJPY |
78.20 |
Source
Bloomberg and
Dow Jones Newswire
