The Australian Dollar opens stronger on Tuesday at 0.8435 after shrugging off worse-than-expected local data yesterday where gross operating profits fell 7.8 per cent in the June quarter and business inventories shrank 3.4 per cent.
For corporate America and Wall Street, the second quarter may be a tough act to follow.Just as investors were closing the book on second-quarter earnings, Dell Inc (DELL.O) drew them back in by accidentally releasing earnings that beat expectations just minutes before Thursday's closing bell.
The Canadian dollar sank against the U.S. currency on Monday as the price of oil dropped on weaker Chinese and European equities, stoking concerns about the pace of economic recovery.
The yen was trading modestly firmer on Monday after the Democratic Party of Japan ousted the ruling Liberal Democratic Party in a landslide, so putting an end to election uncertainty.
The Australian Dollar begins the new week at 0.8410 but has yet to assert itself above the US84 cent mark.
U.S. retailers could see sales in the 2009 holiday season decline from last year's dismal results or show only a slight increase, even in the best scenario, according to a new forecast.
Despite more strong local economic data in the form of CAPEX yesterday the Aussie dollar struggled during the majority of the Asian session drifting lower from the days open around 0.8280 to exchange as low as 0.8240.
The U.S. economy has been improving, and dollar investors are starting to take notice. But punters who bet on more greenback gains from stronger U.S. economic data and interest rate hikes could be disappointed.
Australian Dollar:
Yesterdays stronger than expected Australian economic data provided some level of support for the Aussie dollar at 0.8330 during the local session sending it into early European exchange on its highs pressing against 0.8380. Resistance at these levels proved too strong to overcome and the AUD/USD spent the majority of the offshore session drifting lower. Demand for the Greenback against the majors saw the Aussie move closer to 0.8250 and opens this morning at 0.8275. The loca...
A Manhattan federal judge has dismissed a complaint by Refco Inc's bankruptcy trustee to recover more than $500 million for creditors of the defunct futures and commodities broker from its legal and accounting advisers.
The Canadian dollar fell to its lowest level of the week versus the U.S. greenback on Wednesday
as a warning by a Bank of Canada official about the currency's strength continued to weigh. Meanwhile, stronger-than-expected U.S. durables data boosted the greenback and added pressure on the already-softer Canadian unit.
A multi-faceted indicator designed to give support/resistance levels, trend direction, and entry/exit points of varying strengths. General theory behind this indicator states that if price action is above the cloud, the overall trend is bullish, and if below the cloud, the overall trend is bearish. There are also moving averages (the Tenkan and Kijun lines) which act like the MACD crossover signals with the Tenkan crossing from underneath the Kijun as a bullish signal, while crossing overhead gi...
The Aussie dollar experienced little in the way of volatility during yesterday's local trading day bouncing between 0.8350 and 0.8375 for the majority of the Asian session.
The Aussie dollar experienced little in the way of volatility during yesterday's local trading day bouncing between 0.8350 and 0.8375 for the majority of the Asian session.
Mexico's peso weakened on Tuesday on doubts that stock markets will keep rising because of worries about the strength of a global economic recovery. The peso MXN=MEX01 lost ground for the second straight session, weakening 0.54 percent to 13 per U.S. dollar.
Momentum measures the amount that a financial instrument's price has changed over a given timeframe. Momentum is significant because it signals the strength of price trends. A healthy price trend tends to exhibit strong momentum, while weakening trends often have decreasing momentum indicating a trend reversal or correction. Momentum can also indicate short-term market extremes referred to as overbought and oversold levels. A bullish signal is generated when the Momentum rises above 0 and a bear...
The Stochastic Oscillator is plotted on a scale from 0 to 100. The upper and lower lines (marking the overbought and oversold levels) are at the 80 and 20 levels.
Developed by J. Welles Wilder and introduced in his 1978 book, New Concepts in Technical Trading Systems, the Relative Strength Index (RSI) is an extremely useful and popular momentum oscillator. The RSI compares the magnitude of a stock's recent gains to the magnitude of its recent losses and turns that information into a number that ranges from 0 to 100. It takes a single parameter, the number of time periods to use in the calculation. In his book, Wilder recommends using 14 periods.
The Parabolic SAR, developed by Welles Wilder, is used to set trailing price stops. SAR refers to Stop-And-Reversal. It is designed to create exit points for both long and short positions in such a way that it allows for reactions or fluctuations at the beginning of the position, but accelerates upward (for long positions) or downward (for short positions) as the movement tops out. Parabolic SAR is plotted around the price chart similar to a moving average. The basics behind the formula for co...
Bollinger Bands are a technical trading tool created by John Bollinger in the early 1980s. They arose from the need for adaptive trading bands and the observation that volatility was dynamic, not static as was widely believed at the time. The purpose of Bollinger Bands is to provide a relative definition of high and low. By definition prices are high at the upper band and low at the lower band.
Commodity prices have continued to drop sending the South African Rand and Aussie dollar lower this morning. Risk appetite has taken a hit as increasing loan losses in the U.S and lower profits from companies in China saps demand for riskier assets. This has sent the dollar and Yen higher as the usual market mechanics continue to ring true. While the markets are largely anticipating the current bounce back in the economy companies are finding a hard time justifying this excessive optimism.
The yen rose broadly on Tuesday, advancing in particular against the euro and sterling as a retreat in European shares from a 10-month high the previous day undermined demand for currencies considered to be high-risk.
Chartists employ a two-dimensional approach to market analysis that includes a study of price and volume. Of the two, price is the more important. However, volume provides important secondary confirmation of the price action on the chart and often gives advance warning of an impending shift in trend. Volume is the number of units traded during a given time period, which is usually a day. It is the number of common stock shares traded each day in the stock market. Volume can also be monitored on ...
The Aussie dollar followed the local equity market higher during yesterdays early morning session peaking above the 84 cent mark heading into the release of July New Motor Vehicle Sales which was expected to be a non event.
After experiencing some strong selling pressure in Asia on Friday the Aussie dollar held onto support below 0.8220 to bounce back in aggressive fashion.
With an MACD chart, you will usually see three numbers that are used for its settings. The first is the number of periods that is used to calculate the faster moving average. The second is the number of periods that are used in the slower moving average. And the third is the number of bars that is used to calculate the moving average of the difference between the faster and slower moving averages.
n the realm of technical indicators, moving averages are extremely popular with market technicians and with good reason. Moving averages smooth the price action and make it easier to spot the underlying trends. Precise trend signals can be obtained from the interaction between a price and an average or between two or more averages themselves.
According to the Elliott Wave Theory, stock prices tend to move in a predetermined number of waves consistent with the Fibonacci series. Specifically, Elliott believed the market moved in five distinct waves on the upside and three distinct on the downside. The basic shape of the wave is shown below.
Fibonacci retracement is a very popular tool among technical traders and is based on the key numbers identified by mathematician Leonardo Fibonacci in the thirteenth century. However, Fibonacci's sequence of numbers is not as important as the mathematical relationships, expressed as ratios, between the numbers in the series. In technical analysis, Fibonacci retracement is created by taking two extreme points (usually a major peak and trough) on a stock chart and dividing the vertical distance by...
Market trends seldom take place in straight lines. Most trend pictures show a series of zig-zags with several corrections against the existing trend. These corrections usually fall into certain predictable percentage parameters. The best-known example of this is the fifty-percent retracement.
