Daily Economic Roundup – October 7, 2009

United States

Rinse and repeat! The dollar lost out yesterday, as news reports from Australia and the Gulf states boosted risk appetite. As a result, the dollar took a beating in yesterday’s trading session, more specifically against commodity dollars like the AUD and CAD. More…

Euro zone

Risk appetite came knockin’ at the market’s door early during Asia yesterday, giving the euro a chance to make some significant headway against the dollar. The EUR/USD pair traded as high as 1.4763, more than 100 pips from its Asian open, before eventually closing the US session at 1.4716. More…

United Kingdom

It was a crazy day for the the cable (GBPUSD) yesterday as it swung wildly on both directions. The pair started the day strong and for a time even broke the 1.6000 resistance during the Asia session. It, however, made a sharp turn and dove all the way down to 1.5900 shortly after. More…

Japan

The yen was kept under the shadows of the comdolls given the advance in commodity prices and equities. The surprise hike in the RBA’s interest rate sent both gold and oil surging. Risk appetite once again benefited the high yielders, particularly the Aussie and the Loonie, over the yen. More…

Canada

Commodity currencies (AUD, CAD, and NZD) were having the time of their lives yesterday as they all hit new highs against the USD. Aside from getting a boost from the RBA rate hike and the rise in gold prices, sentiment for the CAD turned very bullish as Canada unveiled its own set of upbeat economic data. More…

Australia

Hats off to Australia! Out of all the central banks, theirs was the first to raise rates ever since the start of the global economic crisis. In their monetary policy statement yesterday, RBA Governor Stevens announced a 25 basis point hike in Australia’s overnight rate. The AUDUSD’s response? A 160-pip leap to reach its 14-month high of 0.8920! More…

New Zealand

The NZD hopped in on the risk train yesterday when the Reserve Bank of Australia unexpectedly hiked the benchmark interest rate to 3.25% from 3.00%. The NZD/USD pair went as high as 0.7379 during the European session before fading its gains late into the US session. More…

Switzerland

The Swissy continued to edge higher against the USD, as the USDCHF pair closed at 1.0270. If USD weakness continues to persist, can the pair keep pushing lower? More…

Pipnoculars: What’s on the Economic Horizon
Will the USD Continue to Tumble?
No Revision Expected on EZ GDP
Crude Oil Inventories to Shake Up the USDCAD?