The USD won in all fields against other currencys today. On the first place,
against the AUD. But why?
On Friday, the us trade deficit was published and had actually been quite
well. But, as Ashraf Laidi wrote,
So, to make long things short, my theorey is:
It took a while to analyse this news for the market movers, especially as the
weekend was to come (or already started at some places) at least in Europe
at that time.
So, if you take that slowdown in demand into focus, because the growth of
the economy has slowed down in the us, that would mean people will buy or
could afford (or just need) less comodities in the near future.
That would explain why currencys like the aud or the cad have lost so much
against the previous trend and maybe even why gold has lost so much.
So, that much to the Trade Balance that should have given the usd support.
If you go into details, in mainly gave aud / cad a kick.
If you look at the aud/usd chart, you'll notice that the aussi started fallin'
about an hour after the Trade Balance has been published (year, it made
kind of a table before, but at least didn't get much higher).
just2cents
Tony
against the AUD. But why?
On Friday, the us trade deficit was published and had actually been quite
well. But, as Ashraf Laidi wrote,
QuoteDislikedBut it was not all about oil. Worthy of notice, is the 7% decline in imports of industrial supplies to a 5-month low of $46.6 bln-making up 25% of total imports. This extended downtrend reflects an overall slowdown in aggeragate demand, rather than simply be blamed on falling oil prices.
So, to make long things short, my theorey is:
It took a while to analyse this news for the market movers, especially as the
weekend was to come (or already started at some places) at least in Europe
at that time.
So, if you take that slowdown in demand into focus, because the growth of
the economy has slowed down in the us, that would mean people will buy or
could afford (or just need) less comodities in the near future.
That would explain why currencys like the aud or the cad have lost so much
against the previous trend and maybe even why gold has lost so much.
So, that much to the Trade Balance that should have given the usd support.
If you go into details, in mainly gave aud / cad a kick.
If you look at the aud/usd chart, you'll notice that the aussi started fallin'
about an hour after the Trade Balance has been published (year, it made
kind of a table before, but at least didn't get much higher).
just2cents
Tony