Finexo Market Review

Thursday, June 4, 2009


The Dollar gained back some of the recent losses on Wednesday, as it retrieved more than 1% of the recent month long 8% slide against a basket of currencies. A broad selloff in equities revived the safe-haven appeal the US currency enjoys. A falloff in oil prices helped the dollar make sharp gains against the commodity currencies and contributed to the steep rise in the ICE index.

Also contributing to the rise in the Dollar on Wednesday was comments from several Asian governments, reaffirming their policies of investing in US debt instruments. China, Japan, India and South Korea said that even if Moody’s or Standard and Poor’s cut the US’s “AAA” rating, it would not prevent them from investing in the US for the long term.

And, more news for Forex Online traders: at 10:30 PM GMT, the ICE Dollar Index, which measures the Dollar against six other currencies, was up 1.02% to 78.94. The Dollar was up .3% to the Yen to 95.84, up 1.9% to the Pound to 1.6269, up 2.9% to the Canadian Dollar to 1.1109, and up 4.2% to the New Zealand Dollar to .6299.


The Australian economy grew in the first quarter charged by a 48 year high in international trade. The Aussie GDP rose by .04% from January to March, preventing a recession down under (which is widely accepted as being 2 straight quarters of negative growth).

The rise in trade offset a decline in housing and business, and reduced the need for intervention by the Reserve Bank of Australia, the Aussie Central Bank. The news spurred on the AUD early in the session, although a steep decline in commodity prices Wednesday reversed those gains. As of today, Australia is the only recession free country with a major currency in the Forex market in general and in the Forex Online market in particular.

At 10:50 PM GMT, the Australian Dollar was down 3.1% to the US Dollar to .796, down 1.66% to the Euro to 1.7706, down 2.56% to the Japanese Yen to 76.57 and off .2% to the Canadian Dollar to .8855. The Australian Dollar did rise 1.1% against the Kiwi and was holding at 1.2634.

Chart: GDP Comparison: Australia, US and Japan

The chart below clearly outlines the significance of Australia’s growth last quarter, which is showing a marked increase against the GDP of the 2 largest economies in the world. Commodity prices and China’s hunger for the core exports of Australia, iron, ore and copper, contributed greatly towards this anomaly in the global recession.


Macarenna June 10, 2009 at 1:51 AM  

Australia's Q1 GDP Current: 0.4% q/q. Previous: -0.5% q/q. Previous revised: -0.6% q/q. Consensus: -0.2% q/q, it kind of beats expectations, doesn’t it?
lets just hope we can count with usd very soon…

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