Daily Forex Fundamentals – September 6, 2011

What’s on the Economic Horizon
RBA to keep rates on hold at 4.75%
U.S. ISM non-manufacturing PMI probably dipped in August
German factory orders down by 1.4% in July?

U.S. Dollar (USD)

Here we go, fellas! U.S. traders are now back from their Labor Day holiday and are ready for some action. The U.S. dollar didn’t let the lack of trading volume stop it from making gains against its major counterparts yesterday, and we might just see the same behavior today. Let’s take a look at the upcoming economic reports to find out. Read more…

Euro (EUR)

Despite most U.S. traders out on holiday celebrating Labor Day yesterday, the bears were still strong enough to take the euro lower. It appeared that the market remains risk averse as financial worries continued to linger in the euro zone. EUR/USD ended the U.S. trading session at 1.4094, a good 66 pips lower from its opening during the Asian session. Read more…

British Pound (GBP)

With disappointing economic reports from the U.K. working side by side risk aversion in markets, it’s no wonder the pound lost against its low-yielding counterparts! GBP/USD gave up 67 pips, while GBP/JPY also suffered a 50-pip fall. Read more…

Japanese Yen (JPY)

Thanks to risk aversion, the Japanese yen was able to outpace most of its major counterparts yesterday, except for the U.S. dollar. USD/JPY opened at 76.86, dipped to a low of 76.68, then pulled up for a positive finish at 76.89. Can the yen continue to bank on its safe-haven appeal today? Read more…

Canadian Dollar (CAD)

For the second straight trading day, the Loonie was unable to defend against the Greenback’s advances. It didn’t matter that Canada was on holiday, the market was just so risk averse that they just had to get their hands on some Greenbacks. USD/CAD ended the day U.S. trading session at .9907, 58 pips higher from its opening price that day. Read more…

Australian Dollar (AUD)

Talk about going down under! The Aussie lost ground against both the U.S. dollar and the Japanese yen as risk aversion loomed over the markets yesterday. AUD/USD closed at 1.0547 while AUD/JPY ended 9 pips above the 81.00 handle. Will today’s RBA monetary policy decision give the Aussie a chance to rebound? Read more…

New Zealand Dollar (NZD)

Who says it ends at strike three? For the fourth day in a row the Kiwi fell against the Greenback amidst the risk aversion in markets. NZD/USD ended up falling by 128 pips to .8319 and even hit an intraday low of .8293. So much for Ki-WIN! Read more…

Swiss Franc (CHF)

What’s that? No news report from Switzerland and the franc gained across the board? Risk aversion must be on like Donkey Kong! EUR/CHF ended up with a 73-pip slide to 1.1093, while USD/CHF also slipped by 13 pips to .7873. Read more…

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis.

Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!