Australian FOREX Weekly Outlook 08/10/2007

FOMC cut rates as focus shifts to Fed speeches, Durable Goods and Euro CPI

08/10/07                                                                                                                                                                                                                 

last week’s currency trading review

The Dollar all focus was placed on Fridays NFP report, as markets awaiting eagerly to verify if the Jobs markets warrants further rate cuts out of the U.S. in light of recent market turmoil. With forecast at 94k new jobs, the figure surprised on the upside with 110k jobs created. Further more, an upward revision of the previous added to further USD strength, although traders returned to bets against the dollar shortly after. The Euro the biggest event in the EZ week was undoubtedly the ECB rate announcement in which rates were kept on hold with relatively dovish comments by Trichet during his press conference. Euro closed last week at 1.4137 having opened at 1.4262. The Japanese saw a positive Tankan survey do little to cause any justification of monetary tightening by the BoJ. The Japanese Yen closed last week at 116.88 having opened at 114.84.    The GBP had the BoE hold rates also despite recent liquidity issue in the UK. The Sterling Pound closed last week at 2.0414 having opened at 2.0458. The AUD was boosted by buoyant retail sales data to trade al 23 year highs above the 90 cent level in the latter part of the week. Once gain the Central Bank also decided in favor of keeping rates on hold. The Aussie Dollar closed last week at 0.8968 having opened at 0.8823.   

The forex trading week preview

In the States Minutes of the Sept 18 FOMC meeting (Tuesday), Trade Balance (Wednesday) and a heavy data day on Friday including Retail Sales, PPI and Michigan Sentiment survey. We will provide our previews and reviews of these data releases in the daily summary.

In the Eurozone GDP Thursday and Industrial Production on Friday. In the UK heavy data week is expected with the release of PPI, Industrial Production on Monday, Trade Balance on Tuesday and House prices on Wednesday. We will provide our previews and reviews of these data releases in the daily summary.

In Japan Trade Balance and current account on Thursday, with most focus on BoJ rate announcement during the same session. We will provide our previews and reviews of these data releases in the daily summary.

In Australia Thursday sees the release of Unemployment rate. We will provide our previews and reviews of these data releases in the daily summary.