Forex Connect: Any Stock Rally To Boost To Aud and NZD - Feb 8 10 9:02 EST
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Forex Connect:
Any Stock Rally To Boost To Aud and NZD
The AUD/USD and NZD/USD are poised to rally following Friday’s closing price reversal bottom, says Brewer Futures Group. Catch Brewer Futures, and TheLFB trade team on ForexTV Live.
Early in the trading session, the Aussie and Kiwi posted strong gains as both higher commodity and equity markets were driving up demand for higher yielding assets. These two markets erased their earlier gains once the U.S. stock markets turned negative. Look for a choppy, two-sided trade as long as their remains uncertainty about investor aversion to risk. If equity markets stabilize then rally, watch for the NZD USD and AUD USD to turn positive.
The U.S. Dollar had a volatile trade overnight with a slight bias to the downside. Profit-taking was highlighted last night as traders turned a little positive that a solution was going to be reached regarding the escalating deficit issue in Greece. Overbought technical factors even helped to weaken the Dollar. Rumors swirled overnight that a solution had been reached to shore up Greece’s finances. These most likely began following a positive comment by French Finance Minister Christine Lagarde’s comment at the Group of Seven meeting. She stated that Greece’s budget deficit would be “managed”.
Following a short-term rally in the Euro and a subsequent break in the Dollar, the Greenback began to strengthen late in the session, as traders began to weigh the evidence for and against a Greece resolution. The Dollar began strengthening after investors realized that there were still some concerns about the fiscal health of some Euro Zone nations and that the G-7 did not offer up strong enough reasons to believe that the situation would improve.
Although European ministers tried to assure their U.S. and Asian counter-parts that they would ensure that Greece would stick to its proposed budget, investors reacted as if their statements failed to instill the confidence needed to prevent a derailing of the global economic recovery. Full Article...
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