Asia Session Recap

Daily Forex Fundamentals | Written by Forex.com | Jul 30 08 06:10 GMT |

Today's lesson will be on the Aussie and Kiwi Dollars and will be titled 'What goes up must come down...' With the AUD/USD reaching a high of 0.9848 just a few weeks ago, it's almost hard to believe that the high flying Aussie is now trading below 0.9500. NZD/USD has suffered the same fate falling from a 0.7761 high just a few short weeks ago, to just collapsing this session to low near 0.7345. It would seem that both pairs are falling out of favor with traders as oil and commodity prices fall, and data continues to disappoint. Headlines have stated that Australia may face a worse crisis than the US, and the current fall of the Aussie Dollar clearly reflects that traders seem to agree. Tomorrow's retail sales data may only add to the woes. The Kiwi which is down 3.3% this month versus the US Dollar, hit a 10 month low as RBNZ Governor Alan Bollard made statements that interest rates 'have room to fall', among other negative tidbits. On the back of Bollard's statements the NZD/USD fell from 0.7377 to 0.7352 in one angry swoop. As of this writing the pair is at its lows near 0.7340 with no reprieve in sight. AUD/NZD blasted to 1.2919 levels, continuing its wild ride. Although the EUR/USD was calm this session, the short-term technicals look ominous, and with many asking if the US Dollar has bottomed, big moves could be afoot. Those moves could be ignited by the upcoming US data in the form of GDP on Thursday and NFP on Friday. Oh, and I forgot to mention falling Crude Oil, the bane of the Euro bulls. The pair was range bound all session between 1.5598 and 1.5572. In Japan, despite poor industrial production data, the Yen chugged higher and the USD/JPY pair hit a 107.87 level mid session before bouncing back to levels just above the 108.00 figure as London drank its morning tea. USD/CAD hit a 1.0274 high in the NY session, a high not seen since mid-June, so far for 2008 the high for this pair is 1.0378 back in January. Canada is the biggest supplier of oil to the US and its Dollar is precariously linked to both commodities and oil. Upcoming Economic Data Releases (London Session): 7/30 5-Aug GE Retail Sales (YoY) JUN 0.70% -0.80% 7/30 5-Aug GE Retail Sales (MoM) JUN 1.30% -0.50% 7/30 9:30 SZ KOF Swiss Leading Indicator JUL 1.01 0.95 7/30 9:30 SZ KOF Leading Economic Indicator 30-Jul Forex.com http://www.forex.com DISCLAIMER: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase of sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.