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NZD USD Traders Await Retail Sales Report Today’s sample of [URL="http://www.forexho

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Oct 12, 2009.

  1. forextrends24

    forextrends24 New Member

    Mar 27, 2009
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    Today’s sample of Forex Analysis from ForexHound.com

    Upside momentum slowed down in the NZD USD today as bullish traders took a breather ahead of tonight’s New Zealand Retail Sales Report. Traders are looking for a 0.5% rise in retail sales in September, but are being cautious because of a negative surprise in last month’s report. The Reserve Bank of New Zealand expressed concern last week about the value of the New Zealand Dollar. They fear the rapid rise in the Kiwi may actually be detrimental to the economic recovery in New Zealand if it begins to hurt export sales. This is another reason why gains were limited today.

    The AUD USD, on the other hand, posted a strong gain on Monday. Demand for higher yields helped drive up the Aussie although gains were probably limited by today’s low volume. Traders are buying the Aussie in anticipation of another interest rate hike by the Reserve Bank of Australia at its next meeting on November 3.

    Demand for higher risk assets also supported a rally today in the EUR USD. Look for this trend to continue as long as U.S. interest rates remain relatively lower to the Euro Zone’s rates. Traders are also becoming more confident that the Euro Zone economy will strengthen at a faster pace than the U.S. economy. Traders have to be careful that the Euro doesn’t spike higher because the European Central Bank is becoming concerned about the rapid rise in the currency and its possible negative effects on exports. Bullish traders should begin to watch for a “verbal intervention” if prices rise too much or get too volatile.

    Read full article at FuturesHound.com as well as Futures Analysis, Futures Education and exclusive timely market Gann Analysis

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