FOREX

The Aussie opens sharply higher today at 0.9950 on the back of news France and Germany have pledged to unveil a comprehensive plan to solve the Euro zone’s debt crisis

Bell FX Currency Outlook The Australian dollar has opened firmer this morning, after improved investor risk appetite and gains across global equity markets boosted the AUD during the offshore session.

Heightening risk aversion has sent the Australian Dollar past yearly lows yesterday as a bank holiday in NSW and the ACT kept local activity pretty thin.

The Aussie was sold heavily into last week’s close and we’ve started the new week on a bearish footing. The pair now looks increasingly like it is producing a bearish descending triangle and this will dominate the market’s view in the near term. A clear break below 0.9900/20 will complete the bearish pattern and trigger new shorts

Ongoing risk aversion and Greenback strength has once again sent the Australian Dollar lower after it tested levels above 99 cents last week.

The Australian dollar has opened weaker this morning currently trading around USD 0.9740, after reversing gains which saw it trade to a high of USD0.9950 during the European session.

The Australian Dollar rallied throu ghout the local Session yesterday with gains throughout Asian Equity Markets providing some much needed support for the Higher Yielding Australian Currency.

It’s a pretty mixed picture across markets with big gains in early trading eroded by large losses towards the end of the session. The major level is 0.9860 and a break below that level will be the trigger for another move lower.

The Australian Dollar breathed a sigh of relief yesterday following a barrage of negative news over the weekend and earlier on this week

The Aussie found resistance just below 0.9870 on numerous occasions on Friday, but leading into the new week, traders are likely to be a little more cautious. While the bias remains to the downside, the market might take some time to settle this week after a volatile session last week. Traders will be looking for reversal signals between 0.9870 and 0.9930.

The Australian Dollar opened at USD 0.9783 this week, finding support as the markets digest the IMF's policy board's weekend announcement, to act decisively and collectively, "to restore confidence and financial stability, and rekindle global growth".

Despite the Australian Dollar losing 5.4 percent against the Greenback last week, the worst since May 2010, the Nation's Currency rebounded on Friday.

The Aussie was forced sharply lower on the back of massive risk aversion and this brought the pair back to support at 0.9700. The market looks to have formed a base around this level and traders will be hoping for a short-term move into 0.9870/930 for a chance at new shorts.

The AUD has opened this morning below USD0.9800 as market confidence and continued concerns of a global recession hit the markets hard.

Sharemarkets across the globe slumped on Thursday on fears that the US and major European economies were at risk of slipping back into recession. US long-term bond yields slumped alongside commodity prices with the Aussie dollar down over US2.5 cents.

In what proved to be a day of massive selling across global equity and currency markets yesterday the Australian Dollar fell to a six-month low against its US Counterpart, as a survey out of China, Australia’s largest trading partner, showed manufacturing weakened for a third straight month in September.

The FOMC has done what was expected via Operation Twist; buying the same amount of Treasuries ($400 bln) as much it will sell, thereby maintaining the size of its balance sheet at $2.87 trillion. This explains today's jump in USD. And the fact that the Fed stayed away from cutting interest rate on overnight reserves is another positive for USD & negative for equity indices.

The Aussie broke sharply lower overnight on the back of the Fed’s statement. From here, a retracement back to 1.0150 would provide the best set-up for new shorts.

The Aussie opens sharply lower this morning at 1.0040 after the US Federal Reserve announced further measures to reduce borrowing costs, strengthening the greenback across the board

The Australian dollar has fallen overnight as pessimism once again pervaded throughout the financial markets. The AUD is back down near parity this morning and looking vulnerable to another move lower.

The Aussie pushed a little higher than we expected yesterday, rising to 1.0300 before reversing at this level. The focus will remain to the downside with major support seen at 1.0150. Don’t forget the FOMC statement at 4.15am as anything can happen around this announcement.

The Australian Dollar has held its ground despite the IMF revising global growth forecasts from 4.3% and 4.5% in 2011 and 2012 respectively, to 4% in both years.

The Aussie jumped to an intraday high of 1.0240 following the release yesterday of the Reserve Bank’s September board meeting minutes which revealed a wait-and-see approach and investors trim their expectations of a cut on October 4.

Six months after the destructive earthquake and tsunami in Japan, the yen still continues to skyrocket. In August this year, the government participated in the foreign exchange market to gain an all-time high foreign reserves value of $1.22 trillion.

The improvement in risk appetite has seen the Aussie march up into resistance at 1.0400 and this will be a major defining level for the week ahead. A break above 1.0400 will change the short-term mood to bullish and is likely to trigger new longs.

US consumer sentiment rose from 55.7 to 57.8 in September, above forecasts for a result near 56.3.

FXCM Currency Strategist, Christopher Vecchio, is bearish on the Aussie this week as the Australian economy continues to remain affected by global economic unease.

Following Friday's positive local session as the regions equity markets bounced, the Aussie hit a 5-day high of 1.0397 during late New York trade. Headwinds remain for the currency however.

The last two days have seen the Aussie bounce strongly from the 1.0200 zone and this shifts the market sentiment to a more neutral tone. Bears will be looking to short around 1.0350 to 1.0370, but a clear above 1.0380 could be seen as a buying opportunity.