FOREX

The Australian Dollar rose during intraday trade yesterday as it held onto its gains of the previous 3 days versus the US Currency.

The AUD popped higher after the RBA governor said yesterday that monetary policy needed to be tightened.

There was stronger sentiment last night in stock markets with the Dow up 1% and similar gains across Europe.

The Australian Dollar advanced yesterday gaining ground against 15 of its 16 major counterparts.

The AUD/USD is currently consolidating in an ever-broadening range and this is usually seen as a sign of market indecision.

Promising economic data out of China saw Australian shares stage a turnaround on Tuesday, closing higher despite significant falls earlier in the session.

The AUD has opened above USD1.0600 this morning, slightly higher than the levels seen late Friday night, despite a couple of lacklustre trading sessions.

The safe-haven Swiss franc held near a record high against the euro in Asia on Tuesday, benefiting from the ongoing European debt crisis, while the greenback stayed under pressure as other currencies like the Australian dollar squeezed higher

AUD traded higher overnight to retest 1.0630/40 resistance area on back of short cross covering.

Buyout activity helped U.S. blue chip stocks eke out a slim gain Monday, though the economic worries that have driven six straight weeks of losses kept traders cautious and weighed on the technology sector.

With it being a Public Holiday (Queens Birthday) in Australia today local trading volumes are expected to be thin as we see the Australian Dollar open noticeably lower against the Greenback at a rate of 1.0531.

U.S. stocks surged higher Thursday as investors looked to break a six-session losing streak with a relief rally.

The Australian Dollar lost almost a cent yesterday as a shock reading in the unemployment data saw the AUD sold heavily during the local session.

The AUD lost ground after yesterday’s employment numbers came in well below expectations. However, after an initial reaction lower, the AUD found support at 1.0560. For now, while 1.0560 holds, the market will stay cautiously bullish, but a break below support at 1.0560/600 will be bearish.

The stories and figures confirming the high level of consumer caution and savings in Australia, are dominating much business thinking.

The AUD was trading higher this morning, buoyed by the return of risk appetite and stronger commodity prices.

The Australian Dollar lost ground early in the Asian session yesterday as the effects of yesterdays RBA interest rate announcement and accompanying rhetoric continues to weigh on the local unit.

The higher yielding currencies were generally lower overnight as investor nervousness spurred a return to the relative “safe-haven” of the USD.

The AUD/USD fell about 60 pips following the RBA’s decision to keep rates on hold but bounced back after Bernanke’s statement caused the USD to weaken. Traders are eyeing the 1.0780 level of resistance, while a break below 1.0660 could set up a move to 1.0600.

The Australian dollar has opened at 1.0710 this morning following a choppy session yesterday afternoon with the RBA’s “no change” announcement.

As expected, the Reserve Bank of Australia left the cash rate unchanged at 4.75 per cent. At yesterday's meeting, the Board judged that the "current mildly restrictive stance of monetary policy remained appropriate" and it will continue to monitor the "outlook for growth and inflation".

The Aussie spent most of Monday's domestic session above the US107 cent mark on speculation there may be a surprise rate hike by the Reserve Bank of Australia when it meets today.

After a solid domestic session the Aussie dollar slipped lower overnight with retreating US equities and losses on the Euro encouraging US dollar strength against its major rivals.

A stronger Euro and weak greenback across the board has propelled the Australian dollar to a three-week high late on Friday night of US107.74 cents.

The AUD/USD benefited from the USD weakness on Friday pushing back to three-week highs at 1.0780.

It's a solid start to the week for the Aussie dollar with price action moving up through 107.50 US cents earlier this morning in an extension to gains recorded in Fridays session. To recap the events of Friday, US nonfarm payrolls recorded meager 54,000 new jobs in May from a previous 251,000 to fall short of the 165,000 estimated.

After briefly falling below 106 US cents overnight the local unit was able to regain composure over the course of US trade with price action moving back up to highs of 106.9 US cents.

AUD recovered its losses from yesterday placing the bulls in control after better than expected retail sales figures for month of April and a general risk on environment overnight. Price needs to overcome the 1.0710/15 static resistance level toconfirm continuation of uptrend.

The Aussie moved higher in onshore trade yesterday as Retail Sales posted a 1.1% increase in April, up from March's 0.3% decrease.