As oil prices are up, the AUD is trading up
USD – As most of you in Forex Trading land know, The US Dollar fell broadly on Thursday, as improved U.S. unemployment and retail sales data boosted hopes of an economic recovery and reduced safe-haven demand for the currency.
Strong demand for long-term US debt at a Treasury auction helped lift bonds and stocks in Wall Street, further diminishing the allure of the dollar as a haven. The U.S. Treasury intends to issue some $2 trillion of debt in 2009 alone. Concern about a record U.S. budget deficit and a steady rise in long term government bond yields, that could make it more expensive to finance, also dented the dollar,
At 11:45 PM GMT the Dollar was down .94% to the Euro to 1.4109, down .6% to the Japanese Yen to 97.57, down 1.4% to the British Pound to 1.6584, down .65% to the Canadian Dollar to 1.108, down 2.1% to the Australian Dollar to .8196, down .3% to the Kiwi to .6434 and down 1.02% to the Swiss Franc to 1.0695.
AUD and CAD – As the price of oil climbed above $73 a barrel, it lifted the commodity reliant currencies such as the Australian Dollar. The price of oil has risen to a level that is the highest in close to nine months, and the prospects are good for the near term future.
Russian gas giant Gasprom predicted the price of oil would rise to $250 a barrel, a number that many considered laughable, but nonetheless it did enough to boost oil for another day.
At 11:50 PM GMT, the Aussie was trading up 1.2% to the Euro, up 1.7% to the Japanese Yen to 79.99 and up 1.5% to the Canadian Dollar. The Australian Dollar fell to the New Zealand Dollar after the Central Bank in that country left interest rates unchanged.
Chart USD/JPY – The pair saw a very strong surge on Friday, after the better than expected US payrolls numbers (which were debatable for a number of reasons, as always due to statistical adjustments, etc…), but this week has failed to see the trade following through higher. The lower edge of the Imoku cloud and the 97.25 area appear to the be the key support zone for the pair right now.
The oil price increases due to the imminent economic revival in the US, ASEAN, etc and the important of financial markets recuperation in the New Global Economy where restructuring and stimulus in respective countries may have an edge.
bonikingv