FOREX

The euro fell to a 4-year low against the dollar on Tuesday as fears the euro zone's debt crisis could spread to its banking system hit the single currency, while deteriorating sentiment supported the greenback.

Good morning dear traders, .... there is not much to report of yesterday´s trading day as there have been only little trading chances due to very low volatility in the markets.

The AUD has opening relatively unchanged this morning due to the quiet offshore trading session as the US and UK markets were closed for public holidays.

The Australian dollar opens weaker today at 0.8450 against the US dollar after pushing back from Friday's early offshore rally above 0.8500.

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The Australian Dollar has come off from its recent high on Friday night of 0.8550 as investors trimmed their positions ahead of the long weekend in the US (Memorial Day today) and the UK (May Bank today as well).

The Australian Dollar opens sharply higher today at 0.8510. Despite a surprise drop in new capital spending, which fell 0.2 per cent in the first quarter, the Aussie rallied from an intraday low of 0.8220.

An interesting chart from the Bank of Japan's latest monthly economic report. Japanese capacity utilization is way down. Around 20% of manufacturing facilities are standing idle. This is an improvement from the beginning of 2009, when 35% of capacity was shut down. But a marked decrease from pre-financial-crisis levels, when there was almost no excess capacity to be found.

European Central Bank policymaker Lorenzo Bini Smaghi said on Friday the euro zone's problems were an early warning to the rest of the world and took a swipe at Germany for fanning the flames of the crisis.

The euro dipped versus the dollar on Friday, paring hefty gains made the previous day, as investors squared positions ahead of the month-end while worries over the impact of the euro zone debt crisis capped rallies.

The Australian Dollar has had a strong run overnight to be trading just below USD0.8500 following a positive lead on equity markets.

The Australian Dollar opens sharply higher today at 0.8510. Despite a surprise drop in new capital spending, which fell 0.2 per cent in the first quarter, the Aussie rallied from an intraday low of 0.8220.

The Australian dollar appears to be building a base in the low USD0.8000s as international financial markets remain volatile.

The Australian Dollar opens lower today at 0.8210 after another turbulent session. A positive lead from local equities helped to support the currency above US82 cents on Wednesday.

Do you also see what I see when you look at the EURUSD chart? According to my opinion the crosspairs loses the gains of last days again. A short study of the crosspair into the past led me to a value of about 1.1632. Impossible? I´m not so sure as the crosspair already touched this level several times in the last years.

It was a volatile session overnight, with AUD trading to its lowest level since July 2009, before rebounding back towards USD0.8300.

Volatility continued yesterday with the Aussie opening at 0.8320, then hitting an intraday low of 0.8184 before bouncing back to 0.8300 – and this was just the first few hours.

Good morning dear traders,I hope you relaxed during the weekend and are fit for the new trading week. I had some goods trades on Friday - however I´m not a Friday trader.

The AUD has opened lower this morning as news out of Europe regarding the financial stability of Spain caused investors to reduce their risky positions as fears about the likelihood global economic recovery persisted.

Volatility continued yesterday with the Aussie opening at 0.8320, then hitting an intraday low of 0.8184 before bouncing back to 0.8300 – and this was just the first few hours.

In 2006 or even earlier the only way to connect retail clients with the Banking Market was what was used to be called the Retail Dealers or the Retail Aggregators. So, Retail Dealers are market makers to their customers; and they traded on a home sale basis with their banks. Obviously this lead to a lot of problems. The Retail Dealer chooses not to hedge the client's positions but to take the other side of the trade 100% of the times or a significant percent of the times. So they have a conflict...

The euro fell broadly on Monday, pulling back from gains last week, after the Spanish central bank's takeover of a savings bank added to jitters about debt problems in some of the weak euro zone countries.

East African Community, a five-nation trade bloc that aims to have a monetary union in 2012, said on Monday that problems in the euro area will serve as a lesson but will not discourage its move to a single currency. East African Community (EAC) comprises Uganda, Kenya, Tanzania, Uganda and Burundi. It already has a customs union, and a common market is due to take effect in July. After the monetary union, it eventually aims to have a political federation.

The Australian Dollar did not revisit the sub 0.8100 territory on Friday's trade as it did the previous day

The Aussie opens at 0.8310 on Monday. Unsubstantiated rumours of Reserve Bank intervention and technical support just above US80-cents halted the recent dramatic slide in the currency on Friday.

Good morning dear traders, EURUSD kept its strength and did not leave the morning range until 6:27 GMT when news of the FED according to EU policy and bad news from Wallstreet were published.

The Australian Dollar is trading in very wide ranges as we write this report. The low of the day so far is USD 0.8072.

With the market extra sensitive to any negative news at present yesterdays shock 7% drop in the Westpac Consumer Confidence report for May sent the Aussie plummeting in local trade.