$3.2 billion. That's the record trade surplus Australia's Bureau of Statistics announced on August 3, thanks in part to Chinese demand for the country's rich iron ore and coal exports. And that's just the latest good news from the island continent that has speculators feeling bullish about the Australian dollar (AUD).
[Read more...]Central Banks Diversify
July 12, 2010 By Leave a Comment
OK… Well, thanks to Chris for taking over the Pfennig on Friday. I was busy with other things for the day. I sent a note to Chris Friday morning about the Canadian Job report, and he replied that he had already written about it! WOW! Quick on the draw! He beat me to the punch… But, the report was so good it's worth talking about some more! Canadian employment skyrocketed again in June rising by 93,200, almost four times the amount expected by forecasters (+20,000). Add this to the 133,000 jobs created in April/May and you've got the ingredients for a strong quarter of job creation! The unemployment rate fell back to 7.9%, lower than forecasts for an 8.1% print.
[Read more...]Russia’s Central Bank Could Boost the Australian and Canadian Dollars
June 24, 2010 By Leave a Comment
The world's third-largest foreign exchange reserve is about to become even more diversified.
First Deputy Chairman Alexei Ulyukayev of the Russian central bank said it is looking to move into other currencies in the near term. The biggest beneficiaries are likely to be Australian and Canadian dollars – opening a door for long-term appreciation for both.
[Read more...]China Boosts the Euro
June 10, 2010 By Leave a Comment
Front and center this morning, the euro (EUR) is pushing higher on some words from Asia… Seems that China is very much behind the euro, and made statements related to that thought, which really put some starch in the euro’s shorts overnight. The thing I worry about right now, is the European Central Bank (ECB) meeting that’s going on as I type my fat fingers to the bone… The ECB could crush this mini-rally in the euro in a heartbeat by saying the “wrong thing” at their press conference that will be held after the ECB announces that rates will remain unchanged.
[Read more...]Australian Dollar a Top Choice for Currency Investors
April 9, 2010 By Leave a Comment
The dollar kept within the fairly tight range it has established over the past few weeks. The dollar index has remained between 81 and 82 for the past 15 days, after jumping higher on the Greek financial crisis. Currency traders are uncertain of where the global economy is heading, and seem to be taking a ‘wait and see’ approach. Eventually a clear picture will start to emerge, but for now, the currency markets are stuck in a rut.
[Read more...]Geithner Heads to China
April 7, 2010 By Leave a Comment
The big news on all of the cable channels this morning is US Treasury Secretary Tim Geithner’s surprise trip to China. Secretary Geithner was in India meeting with Indian Finance Minister Pranab Mukherjee and apparently received an invitation to head on to China. Geithner will undoubtedly be talking about the renminbi (CNY), and China’s plans for their currency. As I wrote yesterday, Geithner postponed the April 15 deadline for the annual review of China’s trade policies, which was probably going to result in China being labeled a currency manipulator.
[Read more...]Eurozone Economy Stumbles and Fumbles
February 12, 2010 By Leave a Comment
Front and center this morning, the non-dollar currencies led by the euro (EUR), are sliding against the dollar… Yesterday, the currencies range-traded all day, and in the overnight Asian session that pattern remained tight… But in the European session this morning, as economic growth in the Eurozone slowed in the fourth quarter of 2009, only one of the currency area’s four largest economies expanded.
[Read more...]
How Will Census Workers Affect the Jobs Report?
It was a ping-pong day for the currencies, back and forth over the net… The net being the “level of the dayâ€?… For instance, the Aussie dollar (AUD) played over the 91-cent net all day, and the euro played over the 1.2820 level all day.
[Read more...]