FOREX

The Australian Dollar spent the majority of local trade yesterday above the 89 cent mark before a brief bout of profit taking late Sydney time took the Aussie down towards the low 89's.

Japan's government unveiled a growth strategy for the next 10 years on Wednesday, including creating new demand and jobs in areas such as the environment and health to boost the economy's growth rate. The government plans to finalise the strategy in June next year by nailing down details such as how to finance measures in the strategy and when to implement proposed policies.

The Australian Dollar held above the 88 cents mark yesterday as news out of China indicated that economic forecasts would keep pace with expectations in 2010 and that it would maintain stimulus polices currently in place.

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The Australian Dollar opens above 88 cents this morning as a continued lack of liquidity during the holiday period continues to keep the market subdued.

The dollar held near recent highs against the yen on Monday, helped by demand from Japanese corporates before the year-end, with eyes on U.S. data and Treasury auctions to see if it can maintain its recent rally.

There is no reason for China's yuan to depreciate against any currency, including the dollar, euro or yen, an adviser to its central bank said on Monday, highlighting the polarised nature of debate on the currency.

In local trade yesterday the Aussie struggled to break from a tight range between 0.8750 and 0.8780 entering offshore exchanging near the bottom of the band at 0.8755.

Borrowing the dollar cheaply to fund purchases of higher-yielding assets was a no-brainer in 2009, thanks to the Federal Reserve's repeated assurances that U.S. interest rates would stay low for an extended period.

The Aussie failed to hold on to the 89 cent level in early morning trade yesterday declining steadily throughout the Asian session to enter offshore exchange around 0.8840 against the Greenback.

Look for Final U.S. GDP numbers on Tuesday (2.8%Q/Q, 0.5% Price Index), followed by Existing Home Sales (6.31M) and the House Price Index (0.2%M/M).

The Aussie dollar bounced back from Friday's morning sell off towards 88 cents to enter offshore exchange around 0.8880 against the Greenback. Lacking direction during European trade the AUD/USD bounced between 0.8860 and 0.8910 on several occasions, surviving a brief dip to 0.8840 and opening this morning pressing against resistance at 0.8910. With persistent demand for U.S dollars over the last week expected to continue it appears attempts to regain the 90 cent handle will be relatively short ...

The dollar is likely to extend gains in the upcoming week, continuing to draw support from growing signs of a stable U.S. recovery as well as a Federal Reserve plan to wind down most of its emergency lending early next year.

The much anticipated third quarter Australian GDP figure surprised the market yesterday rising by a less than expected 0.2%.

I'm not normally much for big predictions, but this one is a no-brainer: The U.S. dollar is going to skyrocket sometime in 2010, which is huge news for your portfolio...

Australia's central bank raised interest rates for a record third successive month earlier in December, pulling further back from emergency lows as the economy gallops ahead of its peers in the developed world.

European shares extended gains in morning trade on Wednesday, with banks taking the lead after sources said global regulators plan to give banks a grace period before they have to implement new, stronger capital rules.

Global equities edged higher on Wednesday, led by banks after a report that global banking regulators are eyeing delaying the implementation of new capital rules, while gold and crude prices were also in demand.

When the global economic crisis hit in the autumn of 2008 there was a joke in Portugal that the world was finally catching up, and stumbling as it had after its own, home-grown housing bust in the early 2000s.

Day trading is simply the buying and selling of any financial instrument in the same trading session. This is different from investing or swing trading.

The Aussie dollar retreated in local trade yesterday following the release of the RBA board minutes to the December meeting where rates were increased by another 0.25%.

There are many reasons that convince us to believe trading Forex could generate results which are almost independent of trading stock (or rather equity). Here are some of those reasons.

Forex market investors usually base their trade decisions or strategies upon macroeconomic data that's presented throughout the month. These “economic indicators” can seriously affect where an economy is headed – for the better or worse. In fact, after a release of a particularly strong economic indicator, the currency rate can actually decrease or increase within a matter of a few hours. One such indicator is the Personal Income and Outlays Report.

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When we refer to the Forex market we usually refer to the Spot FX or Spot Forex market. The Spot FX is a large Over The Counter (OTC) market that consists of thousands of Interbanks, institutional investors/traders, brokerage firms, and millions of retail traders. This market refers to the cash market of Forex. Although the Spot FX contracts settle within 2 days of the contract they are based on the current global price of the currencies. What you actually pay to purchase a currency against sell...

China has so far weathered the global economic downturn with its growth rate staying robust and no sign the government faces any major challenge to its rule. Following is a summary of key China risks to watch:

The Situation on the board has not changed much over the last few trading days. EUR/USD as we expected came down from 1.50 areas and it is trading close to its midterm support 1.4615. It does not look like it is going to fly through it and reach lower levels before Xmas 2009. It is consolidating for now and we will have to see how it is going to play out over the next few days. We favor that there will be correction taking place to around 1.4860-49 area or even possible re test of 1.50 levels be...

With aggressive AUD/JPY selling following the release of Japanese economic data the AUD/USD exchange rate fell from its early Monday morning high around 0.9120 to trade as low as 0.9055 during the Asian afternoon.

GBP: This week has a lighter slate of economic releases scheduled in the United Kingdom than the previous week. Look for the Rightmove House Price Index (last -1.6%) plus the BOE's quarterly bulletin on Monday, then CPI (1.8%Y/Y) and RPI (0.2%Y/Y) on Tuesday.