AUD

Ever had the feeling you've missed a great trading opportunity? I bet every trader has: As I write the dollar is making a very impressive recovery. If you look at the small screenshot above of the AUD/USD currency pair on a weeky-hourly chart, the dollar made more than 100 pips in the past six of seven hours. Note the fat green candlestick - we all know what economic event triggered that - the US interest rates.

Major falls in Commodities overnight Lead to Minor Correction: Overnight in US trade (- yes I just woke up!) the commodities took quite a hit. Aussie dollar is well down and analysts expect the market to open a lot lower than yesterday. Looks like a correction... The analyst being interviewed on the radio said that underlying supply and demand fundamentals for the commodities are still good - China still needs the metals. Anyway, enjoy the new trading opportunities - and for those who had open positions, I hope you had your stop losses!

AUD Falls a Little Further to US74.21¢ at 7am (AEDT) - A Delayed Reaction to Non-Farm Payrolls Data: The Aussie opened weaker today (Tuesday) as the US currency gained on most major currencies. At 7am (AEDT), the Aussie was trading at US74.21¢, lower than Monday's close of US74.72¢. Overnight, the AUD reached a low of US74.13¢ and a high of US74.75¢. There is a lack of economic indicators this week so the US dollar gained from a delayed reaction to the non-farm payrolls released last Friday. The RBA meets today for the first time in 2006 where the market sentiment is that the Australian interest rates will be kept constant at 5.5 per cent. The data releases expected today are: NAB quarterly business survey and D&B January business expectations survey.

The Aussie dollar has added more than half a US cent since Tuesday amid speculation that the US Fed may not be quite done lifting rates. The dollar gained momentum throughout the night supported by commodities and gold. At 7am the Aussie was at US 75.14¢, Tuesday's close was at US75.12¢. The US Fed reserve raised interest rates to 4.5 per cent the highest since April 2001. The statement issued by the Fed was scrutinised by investers to interpret any futher information indicating any future interest rate direction.