Lawrence Villamar

The AUD has managed to grind a little higher again overnight.

The Aussie dollar continued higher overnight after breaking above resistance at 1.0520. The pair found resistance up at 1.6000 and we might see a short term pullback in the Asian session. A pullback to 1.0520/480 will be seen as a buying opportunity.

US producer prices rose by 0.2pct in July, ahead of expectations for a 0.1pct gain. And core prices (excludes food and energy) rose by 0.4pct - well above forecasts for a 0.2pct gain.

The Australian Dollar lost ground yesterday trading to an intra-day low of 1.0432 against its US Counterpart after report showed the Nations Wage Price Index rose in line with expectation.

U.S. stocks eked out a slight gain as investors weighed earnings from some high-profile retailers against signs of rising input costs and continued dissatisfaction over efforts to find a solution to Europe's debt woes.

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The AUD has held ground overnight despite the release of contrasting economic data from the US and Europe overnight.

The Aussie dollar bounced from 1.0400 again overnight giving traders the opportunity to take new longs. For now, the Aussie looks to be trapped between 1.0400 and 1.0530. A break of 1.0530 will be seen as a buying opportunity, while any pullback to 1.0400 will also be seen as buyable.

US housing starts fell by 1.5pct to a 604,000 annual rate in July, in line with expectations. US industrial production soared by 0.9pct in July, well above forecasts centred on a gain of 0.5pct. Capacity use jumped from 76.9pct to 77.5pct.

The Aussie was sold off early in the Asian session to an intraday low of 1.0405 in the lead-up to the release of the Reserve Bank August minutes.

U.S. stocks fell Tuesday after three straight sessions of sharp gains, as investors expressed disappointment over proposed measures from European officials to strengthen euro-zone fiscal governance.

Now the Aussie has broken out of the bullish ascending triangle and is above 1.0400, the market is taking a more bullish approach to the AUD/USD. Traders will be focusing in the upside and any pullback to 1.0400 will be seen as buyable. RBA minutes due at 11.30am and this could see some weakness from the Aussie.

The AUD has found strength once again, as local and offshore equity markets continue their recovery after the recent rollercoaster ride.

The US Empire State manufacturing index fell from minus 3.76 to minus 7.72 in August. The National Association of Home Builders index was stable at +15 in August.

U.S. stocks advanced Monday, wiping out last week's losses, as corporate deal making helped send the market to the biggest three-day winning streak since March 2009. The Dow Jones Industrial Average finished 213.88 points higher, or 1.90%, to 11482.90, closing near session highs for a third straight advance.

The Aussie is looking ready to break above 1.0400 as it formed a bullish ascending triangle at lower levels. Once we see this break above 1.0400, the market is likely to focus on long positions. Until we see a break above 1.0400, however, the market is likely to be more wary.

The AUD is stronger this morning currently trading at USD1.0380 as offshore equity markets finished stronger and markets stabilised after the tumultuous week.

US retail sales rose by 0.5pct in July - the biggest gain in four months - and in line with the consensus forecast. Excluding autos, sales rose by 0.5pct - above the consensus forecast of a 0.2pct rise. But consumer sentiment fell sharply to a 31-year low in August, dropping from 63.7 to 54.9.

In what proved to be a tumultuous week for the Australian Dollar with ranges of more than five US Cents being witnessed a sense of normality was temporarily restored throughout the foreign exchange market on Friday.

U.S. stocks closed higher Friday as an upbeat retail sales report trumped a weak reading on consumer confidence, capping one of the most volatile weeks in Wall Street history.

The Aussie is looking a little more solid at these lower levels with the AUD/USD forming a neutral symmetrical triangle over the last 48 hours. While the market will remain focused on the downside in the very near term, the break higher above 1.0300 looks more positive and a break above 1.0400 is likely to change the market’s view to bullish.

The Australian dollar has opened around USD1.0350 this morning after yet another volatile day in global markets.

US initial jobless claims fell by 7,000 to 395,000 in the past week - marking the lowest reading in four months. The number of people receiving benefits after drawing an initial week of aid fell by 26,309 to 3.16 million.

U.S. stocks notched a massive advance Thursday, as investors seized on favorable corporate and economic reports to recover most of the ground they lost in the previous session.

The steep up and down movements in the Australian Dollar in recent days make the French Alps look like the Nullarbor Plain.

The AUD dollar has fallen considerably overnight as once again investor concern over global growth prospects and the sovereign debt crisis in Europe sparked a sell off in higher-yielding investments.

Resistance at 1.0400 worked a like a treat over the last 24 hours with the Aussie tumbling over 250 pips from this level. Until we break above 1.0400, traders will be focusing on the downside and there is the potential to move back to support at 0.9930. A move back to 1.0260/300 could be seen as a selling opportunity.

The release of the Bank of England Inflation Report for August suggested that policymakers were clearly more downbeat than in May. In terms of interest rates the policy makers are in “wait and see” mode. GDP growth in 2011 will be weaker than expected at just 1.4pct, while CPI inflation is expected to undershoot the 2pct target.