Lawrence Villamar

AUD was caught in the cross-fire of risk currencies getting sold on EU debt concerns and we closed towards the lows. Traders still calling AUD lower in the coming sessions but wanting a clear break of 1.0500/20 support to confirm this view. RBA minutes tomorrow may dictate the overall move for the week, but with commodities struggling, downside is the risk.

AUD was initially sold lower in Europe as the market continued with negative sentiment after the bad jobs numbers but support was yet again found under 1.0600 and most traders are now starting to feel that 1.0550/1.0600 could be the base for the time being. For the bullish sentiment to return we need a convincing break back through 1.0700

Yesterday the Australian Bureau of Statistics (ABS) reported that the unemployment rate remained at 4.9% in April, while total employment fell by a seasonally adjusted 22,100

The recent woes of the Aussie were compounded by local employment data yesterday and after falling almost 2 cents in the 12 hours prior to the release another cent was given up almost immediately.

MARKET CLOSE (4.30pm AEST)The energy and mining sectors were the best performers yesterday, but it was a very different story today, with both sectors holding the market back. The ASX 200 index (XJO) fell 1.8 pct or 84.1 pts to 4696.1 while the broader All Ordinaries index (XAO) slumped by 1.7 pct or 81.6 pts to 4776.6.The S&P/ASX 200 Materials index fell 2.57 pct or 355.2 pts to 13482.1, off the back of weaker commodity prices overnight in U.S trade. Australia’s largest miner, BHP B...

Stocks climbed Thursday, reversing sharp morning losses as commodities rebounded and defensive stocks strengthened. The Dow Jones Industrial Average gained 65.89 points, or 0.52%, to 12695.92, while the Standard & Poor's 500-stock index gained 6.57 points, or 0.49%, to 1348.65 and the Nasdaq Composite gained 17.98 points, or 0.63%, to 2863.04.

The energy sector pulled U.S. stocks lower Wednesday, with the Standard & Poor's 500 index posting its biggest one day drop in two months, as crude oil prices tumbled. The Dow Jones Industrial Average shed 130.33 points, or 1.02%, to 12630.03.

AUD continued to push higher early until it ran into resistance towards 1.0900. Helped along by a major commodity sell-off it was quickly down through support and 200 points lower. From here traders are keeping a keen eye on commodities and sentiment is sell any rally back towards 1.0800 looking for a re-test of the lows around 1.0550/1.0600 in the coming days

Gold and silver prices rose for the third consecutive session, boosted by fighting in Libya, uncertainty about debt-laden Greece and the rising cost of oil and grain. Last night’s 2011/12 Federal Budget was a reasonably predictable one from the Government with Treasurer Swan selling it as tough.

AUD continues on it’s march back towards the previous highs and the break of 1.0800 provided more bullish signals. We have Chinese data out today strong results could give the impetus to break through 1.0900 although initial resistance is expected to be around at that level. Any dip back towards 1.0800 is also expected to see the buyers emerge

U.S. stocks advanced Tuesday, as investors drew encouragement from Microsoft Corp.'s $8.5 billion deal for Skype Technologies and from signs of strength in the U.S. economy and overseas. The Dow Jones Industrial Average climbed 75.68 points, or 0.6%, to close at 12760.36, led by Walt Disney Co., which rose 1.9%, and Hewlett-Packard Co., which gained 1.3%.

Oil again proved extremely volatile with plenty of opportunity to trade both sides. 100.00 is now seen by traders as an important level and they are happy buying so long as this level holds, but a break of there could see it quickly down to the previous lows of 95.50. Sellers rumoured to be around above 104.00 through to 106.00 in the short term.

U.S. stocks climbed Monday as commodity prices recovered from last week's slump and a burst of deal activity helped overshadow concerns over Greek finances.

Your emotions often affects the way you trade. Here is a brief article on how you can make your emotions more manageable.

The Australian Dollar has opened up this morning slightly above 1.0700 after another day of volatile trading on Friday when the AUD bounced to a high of 1.0800 after better than expected jobs data in the US for April was released.

AUD found support on the dip during Asia on Friday and it was only the better than expected jobs data which saw it back off from the highs. Traders still seem content to be long AUD and buying on the dip with 1.0650 now the important level being watched and a break through there could be bearish in the short term. 1.0550/1.0600 expected to provide further support.

U.S. stocks rose Friday as investors were encouraged by a bigger than expected increase in monthly nonfarm payrolls, but worries over Greece limited the gains.The Dow Jones Industrial Average closed up 54.57 points, or 0.43%, to 12638.74. Kraft Foods was the measure's best performer with a jump of 69 cents, or 2.1%, to $34.08, after the packaged-foods company's first-quarter sales and profit topped analysts' estimates.

In local trade yesterday we saw the release of Australian Retail sales with the subsequent poor result surprising the market. Despite economists forecasting a rise in sales of 0.5% for the month of March the actual figure came in negative 0.5 per cent, giving way to a significant sell off in the Aussie Dollar.

The energy sector led U.S. stocks lower Thursday as crude-oil prices plunged and jobs data disappointed, hurting expectations for the government's upcoming employment report.

AUD continued lower as commodities were sold aggressively and risk currencies went out of favour. Even though we initially broke through there, the previous support around 1.0600 has provided some sort of support and traders are now cautiously looking to re-initiate longs thinking that this was the clean-out needed to start the march higher again.

The AUD was already trading lower after yesterday’s release of some weaker than expected retail sales data for March. The Australian Bureau of Statistics showed retail spending had decreased 0.5% in March, which was much worse than economists’ forecasts of a gain of 0.5%. The AUD dipped to USD1.0706 from USD1.0764 prior to the data release. Further unwinding of global risk appetite and another massive sell-off in commodities saw the AUD fall further offshore, getting closer to USD1.0500 level.

US jobless claims rose by 43,000 to 474,000 last week - marking the highest reading since August. Layoffs in the auto sector due to supply disruptions following the Japanese earthquake were expected to keep the labour market subdued in the near term.

The AUD took an initial hit yesterday when reports began to emerge that high profile investor George Soros was a seller of gold. The price of silver has also fallen dramatically over the last few days, losing 19% of its value since Friday of last week.

The Aussie made an early attempt to push higher overnight before the bears regained control and pushed the AUD down by more than 100 pips. The selldown we have seen this week could be nearing its conclusion, however, with traders looking for a bounce near 1.0680/700. If the bounce does occur, traders will be looking to take profits sooner rather than later

The Australian dollar (currency code AUD)is divided into 100 cents and has been the currency of the Commonwealth of Australia since 14 February 1966.

U.S. blue-chip stocks finished virtually unchanged as investors dumped energy and materials stocks and headed for the safety of bonds and telecommunications companies. The Dow Jones Industrial Average finished just 0.15 point higher at 12807.51, while the Standard & Poor's 500-stock index shed 4.60 points, or 0.34%, to 1356.62.

The Australian Dollar has opened slightly weaker this morning at USD 1.0840 after seeing some profit taking by investors yesterday.

With the RBA sitting on the sidelines for the moment, the break through 1.0890 provided the bearish signal that trader’s have been waiting for and for the first time on months a sell the rally sentiment has entered the market (at least in the short term) as traders are now seeing solid selling of AUD across not only USD, but EUR and JPY keeping AUD heavy.

Traders are eagerly awaiting the RBA announcement at 2.30 this afternoon after playing the range from the long side proved successful overnight. Traders seem to be a little less bullish this morning as the failure to go on with it above 1.1000 on the second attempt has caused a bit of confusion. A break through 1.0890 is a quite bearish signal.