The Forex Market Insight Report shows charts on different major currencies and commodities, with brief commentaries on how new data releases and news cause movements in the market.

HEADLINES:

  • The upward march resumes as AUD & Gold touch record highs again.
  • Australian unemployment at 11.30am this morning to give an indication on future Australian interest rates.
  • EUR rallies on expectations of an interest rate rise today.
  • Portugal put their hand out for a rescue package as the cost of raising money themselves becomes too high.
  • Oil continues to push higher as NATO air strikes continue over Libya.
  • ECB & BoE interest rate announcements this evening has traders poise for volatility. Watch for aggressive reversals if there are no rate rises

AUD/USD
After an initial breather it was AUD/JPY breaking through yearly highs and surging higher that saw AUD/USD off the lows. It was one way since then and we easily broke through the previous high of 1.0400, which now forms the base for which traders feel higher is the play. Watch the ECB decision, if there is no rate rise and EUR gets sold, AUD may also reverse.

XAU/AUD
Gold continued to grind higher and make record highs as inflationary pressures worldwide continue to concern, helped along by the inflation release in Switzerland. As mentioned previously, while these concerns continue buyers continue to win the battle with 1,455.00 & 1,448.00 (the previous highs) now the support levels on the downside.

EUR/USD
All eyes on the ECB tonight and the market has factored in a rate rise tonight. What this means is that the trend will probably continue until the release of the result and if they raise, the trend should continue onwards, if they hold rates steady there could be a major reversal and great opportunities to get short looking to target back towards 1.4150/60 region.

GBP/USD
GBP/USD was initially sold as lower than expected manufacturing data created concern that a rate rise might not be forthcoming from the BoE today. As with the EUR, the market is pricing in a rise, but they are not as certain as the EUR, so if there is no rise, the reversal may not be as strong and if there is a rise the topside move could be more aggressive.

USD/JPY
The uptrend continued to be profitable for buyers on the dip and we open the session towards the previous highs of 85.50 and sentiment seems to still be bullish looking to break through during today’s session. Yesterday say aggressive buying of JPY crosses (EUR/JPY & AUD/JPY) and this also looks set to continue.

AUD/JPY
AUD/JPY broke through yearly highs of 88.00 yesterday and it was straight through to 89.00. Buyers continue to be aggressive on any dip and now that we have consolidated above 88.00, it looks like the bullish sentiment will hold the market still for the short term at least.

OIL
Oil continued to consolidate for the third day straight and traders continue to buy the dip as airstrikes from NATO continue to occur in Libya. The more we consolidate the more chance we will push higher and traders are quite content to stay long for the
time being unless we break back through 107.00/50.

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