Australian Consumers Cut Back on Continued Recession Fears

Daily Forex Fundamentals | Written by AC-Markets | Sep 03 08 09:08 GMT |

EURUSD traded into sub 1.45 territory in yesterday's session as the dollar index rose on the back of easing commodity demand. Traders unwound their hedged positions after Hurricane Gustav fears faded. In Asian trading EURUSD initially dropped to 1.4414, before regaining to 1.4450 in staircase fashion. The USDJPY steadily rose from Asian opening to near 109.00 levels. Japanese currency holding it's ground in relatively bearish market sentiment as Prime Minister Fukuda resigns and economy continues to be under-pressure. Nikkei ended last trading session 1.8% lower, despite an initial rise as investors considered the possibility that his successor might be able to push through some much needed changes. Asian markets in general are under pressure as global sentiment remains pessimistic. Despite this Korean Development bank proposed to buy a 25% stake in Lehman brothers and another Chinese bank has shown interest. European Central Bank and Bank of England decide on rates tomorrow, investors cut back on positions before policy decisions. European equities trading higher yesterday as lower Euro helping exports, this bearish trend helped by European spending report expected to show continued consumer pessimism. AC Markets http://www.ac-markets.com Disclaimer: This report has been prepared by AC Markets (thereof ACM) and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Salesperson or Traders of ACM at any given time. ACM is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.