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Monday 8th September 2008 Weekly Ranges: AUD/USD: 8055/8529
NZD/USD: 6590/6879 NZD/AUD: 8285/8130 What happened last week? An extremely volatile week with further declines in commodity prices especially Oil and Gold, causing quite rapid gains for the USD.
Concerns about continued turmoil in the U.S. credit markets had provided large scale exit of risk related carry trades. Bad economic news from the UK led to extremely large selling of GBP across the board, providing further support for the USD. Once of the best developments of the week, was the expected delivery by the RBA of a 25bp interest rate cut. Their first cut in 7 years. The AUD/JPY, NZD/JPY and EUR/JPY were absolutely smashed this past week as a result of players backing out of carry trades. GBP/USD sell off helped this in the Euro time zone. Whilst the AUD came under heavy selling pressure – despite the fact that the RBA accompanying statement was not as dovish as players had suspect. Weak economic data out of Australia – accelerated the selling. What did we do: We remained short of NZD/USD for most of the move lower, along with small short AUD/USD positions. A couple of opportunities were taken to be short NZD/JPY and EUR/JPY.We’ve remained small short of NZD/AUD down at these levels and ahead of this weeks expected OCR rate cut by the RBNZ. | Mon 8th | Tues 9th | Wed 10th | Thur 11th | Fri 12th | | AU RBA GOV. GLENN STEVENSAPPEARS BEFORE the house of Rep. Standing committee on economics,ANZ JOB ADS NZ VALUE OF BLDG WORK PUT IN PLACE,US Consumer credit | AU RETAIL SALES, HOUSING FINANCEINVEST. LENDING, NAB MTHLY BUS. SURVEY,USFEDERAL RESERVE CHRMANBERNANKE SPEAKS , PENDING HOME SALES, | AU Consumer confidenceNZ Terms of Trade Index, REINZ House sales | AU Employment, unemployment rateUS Trade Balance, Import prices, Export prices NZ RBNZ announcement on Interest Rates, Food Prices | US PPI, Retail sales, bus inventories NZ Retail Sales |
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