Fundamental analysis by Admin

The Dollar slightly rebounded on Tuesday but the correction was quite shallow ahead of US national holiday. After GBP reached 26-year high, NZ dollar also hit 22-year high yesterday afternoon.

Australia’s central bank left official cash rate unchanged at 6.25% on Wednesday, in line with expectation. Aussie against US dollar was little changed after RBA rates kept steady.

Today is the National Holiday for the U.S. Market may be choppy due to the thin liquidity. Other important data will be AUD trade balance and EURZONE retail sales.

AUD was quite steady after RBA left the interest rate unchanged. The long-term outlook for AUD is still bullish with a target of 0.8900. Look to buy on dip at 0.8460.

US could be target of terrorist attack

The Dollar declined across the board last night, reaching 26-year low against sterling ahead of an upcoming U.S. national holiday on concern that the U.S. may be the target of the terrorist attack. Market ignored better than expected US manufacturing index. Instead, market turned its attention toward the weaker than expected US ISM price paid, indicating no inflation in the US. The euro was about 0.7% higher at 1.3635, and the low of the Japanese yen was at 122.09.

Sterling break a new record

Poundsterling breaks a 26 six years highest record against USD after the US ISM manufacturing data. Although US manufacturing data showed increasing to 56 from 55 last month, but market still support for Sterling to break a new high record according to the expectation on rise of the interest rate which date on July,5,2007

AUD analysis

AUD reached the target of 0.8530 this morning. The underlying trend is still very much bullish. Look to buy on dip at 0.8450, target at 0.8680.

US depends on ISM Manufacturing

As for today, light data in the morning may keep the currency trading in a range. US ISM manufacturing data will be the only key data for the US.

JPY Tankan report showing not good result

Slightly worse-than-expected Japan Tankan report didn’t bring too much volatility to the market. Carry trades is still intact.

The Down of USD

The Dollar lost the ground across the board last Friday except for the Canadian dollar. The Canadian dollars shoot up to 30-year highs due to the stop loss triggered. However, the Canadian dollar rebounded back to 1.0660 from 1.0470 low after a weaker than expected GDP data.