Aussie Beaten Down Early

Discussion in 'Forex' started by cstfx, Nov 16, 2008.

  1. cstfx

    cstfx

    Aus/USD took a hit coming off weekend down to 6360 range but found support on CB intervention. Talk is they will defend it at 6350 again like last week:

    http://au.biz.yahoo.com/081116/19/21r34.html

    Aussie dlr bounces, sparks talk of RBA intervention
    Monday November 17, 2008, 9:44 am

    SYDNEY, Nov 17 (Reuters) - The Australian dollar pared hefty early losses on Monday as a bounce from major support sparked talk of possible intervention, though the Reserve Bank of Australia (RBA) would not confirm it had acted.

    * The Aussie had sunk to $0.6363 AUD= in early trade, from $0.6586 late in New York on Friday, but then quickly jumped to $0.6445, leading dealers to suspect the RBA was buying.

    * The central bank intervened on at least two occasions last week, buying the Aussie around $0.6350 when the market was disorderly and lacking liquidity.

    * The Aussie had come under pressure after the weekend meeting of G20 countries produced a lot of good intentions but no concrete plan to avert a looming global recession [nG7G8].

    * Instead investors turned risk averse again after Wall Street's .SPX late slide on Friday and figures showing a record fall in U.S. retail sales [nN14423234]. Asian shares were seen falling further on Monday.

    * The Aussie also lapsed to 62.49 yen AUDJPY=R, from peaks around 64.95 in New York, as safe haven flows lifted the Japanese currency across the board.

    * The same rush to safety benefited bonds. Three-year bond futures YTTc1 rose 0.105 points to 96.250, while the 10-year contract YTCc1 added 0.070 to 95.030.

    * Australian bill futures 0#YBA: continue to price in a rate cut of at least 75 basis points at the RBA's next policy meeting in December.

    * Data on third-quarter inflation-adjusted retail sales are due later on Monday and while analysts generally expect a modest 0.5 percent rise, anecdotal evidence is that sales took a severe turn in October.

    * The minutes of the RBA's November policy meeting are due on Tuesday and analysts are keen to hear why it decided to cut by a larger-than-expected 75 basis points.

    * RBA Governor Glenn Stevens and RBA Assistant Governor Malcolm Edey both speak on Wednesday. (Reporting by Wayne Cole)
     
  2. just21

    just21

    No government debt, LNG terminals being built . AUD should be a petro currency.