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Aussie Offered in Early Trade (Opening Comment).

OPENING COMMENT The early session is one of profit taking thus far, with Asian traders content on lightening up following the aggressive currency buying across the board on Tuesday. Most currencies are now lower against the US Dollar on the day, while Sterling has managed to post some minor gains, with the single currency showing relative strength on the back of the much better than expected industrial production numbers on Tuesday. The Australian Dollar on the other hand has underperformed, with the commodity currency weighed down by the weaker than expected retail sales number. This result has more than offset an earlier release of solid consumer confidence data. In Japan, BOJ Suda was on the wires supporting the current accommodative policy, but also warned that if kept too long, the excessive accommodation could be damaging. In China, the news that the country would be looking to invest $300B from its sovereign wealth fund into distressed US real estate, was seen generating attention. Asian equities are lower on the day, while commodities are also slightly offered, with gold vulnerable to a bearish reversal day on overbought technical readings above $1000. Looking ahead, German CPI (0.2 expected) is due at 6:00GMT, followed by UK trade balance (-6250 expected) at 8:30GMT. Written by Joel Kruger, Technical Currency Strategist for If you wish to receive Joel's reports in a more timely fashion, e-mail and you will be added to the "distribution" list. Visit the DailyFX Forex Stream for Real-Time News and Market Updates

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Publication:Mena Report
Article Type:Brief article
Geographic Code:8AUST
Date:Sep 9, 2009
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