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7 Oct 2013
Session Recap: USD a tad weaker as US shutdown set to extend
FXstreet.com (Barcelona) - The weekend press failed to provide comforting news for the interest of the US Dollar, which saw some slight pressure to the downside as Washington continues to show no willingness to find a solution to the current government shutdown.
The Japanese Yen, as a consequence of the US political stalemate, saw some early bids along inter-bank trading, sending the rate vs the USD back towards 97.00 support as investors start to run out of patience. EUR/USD, meanwhile, came up to retest Friday's broken support-turned-resistance level at 1.3575, while the AUD/USD saw some range-bound activity between 0.9420-50.
Despite the economic calendar was pretty much vacant, along the Asian session we also learnt that Australian fundamentals continue to head higher, after the AiG construction index saw a significant improvements, following last week's upbeat readings in both manufacturing and services PMI.
Given the recent array of improved indicators 'down under', there has been an increase in the number of publications suggesting the difficulties the RBA is about to face to justify further rate cuts. We wrote an article titled 'Australia to enter new growth cycle? What it means for the RBA?' aimed at reflecting this developing story in Australian fundamentals, despite being tentative in nature, and subject to further evidence.
The equity market had a poor performance today, with the Nikkei 225 down below 1% and the Hang Seng Index -0.75%. In China and Australia, markets were closed due to public holidays.
Main headlines in Asia
Political landscape in the U.S. getting uglier by the day...
Australia to enter new growth cycle? What it means for the RBA?
Australian construction index upbeat, another sign economy improving
This week's key data releases and events to watch - Nomura
AUD net shorts could be unwound; 0.97 projected target - TDS
The Japanese Yen, as a consequence of the US political stalemate, saw some early bids along inter-bank trading, sending the rate vs the USD back towards 97.00 support as investors start to run out of patience. EUR/USD, meanwhile, came up to retest Friday's broken support-turned-resistance level at 1.3575, while the AUD/USD saw some range-bound activity between 0.9420-50.
Despite the economic calendar was pretty much vacant, along the Asian session we also learnt that Australian fundamentals continue to head higher, after the AiG construction index saw a significant improvements, following last week's upbeat readings in both manufacturing and services PMI.
Given the recent array of improved indicators 'down under', there has been an increase in the number of publications suggesting the difficulties the RBA is about to face to justify further rate cuts. We wrote an article titled 'Australia to enter new growth cycle? What it means for the RBA?' aimed at reflecting this developing story in Australian fundamentals, despite being tentative in nature, and subject to further evidence.
The equity market had a poor performance today, with the Nikkei 225 down below 1% and the Hang Seng Index -0.75%. In China and Australia, markets were closed due to public holidays.
Main headlines in Asia
Political landscape in the U.S. getting uglier by the day...
Australia to enter new growth cycle? What it means for the RBA?
Australian construction index upbeat, another sign economy improving
This week's key data releases and events to watch - Nomura
AUD net shorts could be unwound; 0.97 projected target - TDS