Kiwi and Aussie Dollars on the rise while the US dollar drops

While China's central bank today backing off statements made on Friday in which it reiterated the need for a new global reserve currency away from the dollar , The US dollar and yen dropped versus most of their major counterparts as a report showed confidence in the European economy increased and U.S. stocks rose, encouraging investors to buy higher-yielding assets. The Swedish krona was the biggest winner against the dollar among the 16 most-traded currencies as investors bought Scandinavian debt. The Euro gained the most versus the yen in four weeks as improvement in European executive and consumer sentiment added to signs record low rates are helping pull the euro area out of a recession
The Australian and New Zealand dollars rose, heading for their best quarter against the greenback since at least 1985, as optimism the global slump is easing buoyed demand for higher-yielding assets.

The two currencies gained for a sixth day versus the U.S. dollar after regional stocks advanced.

Mexican Peso is Worthless?

Chase bank customer tries to exchange peso for dollar and gets a shocking surprise

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Australian Dollar Climbs on Yield Demand; kiwi dollar Weakens on GDP

By Garfield Reynolds and Theresa Barraclough

June 26 (Bloomberg) -- Australia’s dollar rose for a fourth day as stocks climbed on speculation investors will buy higher- yielding assets amid signs of a global recovery. New Zealand’s dollar fell after the country’s economy shrank at a faster pace.

Australia’s dollar strengthened against all of the 16 major currencies as prices rose for gold and oil, the nation’s third- and fourth-most valuable commodity exports. New Zealand’s dollar fell against the greenback and all of the most-traded currencies after the statistics bureau said gross domestic product declined 1 percent last quarter, exceeding the median estimate for a 0.7 percent contraction in a Bloomberg News survey.

“We are seeing higher risk appetite across the board,” said Sharada Selvanathan, a currency strategist at BNP Paribas SA in Hong Kong. “With equity markets remaining stable, investors are happy to put their money into good use. The Aussie will do well.”

Australia’s currency gained 0.5 percent to 80.62 U.S. cents as of 1:31 p.m. in Sydney from yesterday in New York. It climbed 0.4 percent to 77.31 yen. New Zealand’s dollar weakened 0.2 percent to 64.40 U.S. cents and slid 0.2 percent to 61.78 yen.

Benchmark interest rates are 3 percent in Australia and 2.5 percent in New Zealand, compared with 0.1 percent in Japan and as low as zero in the U.S., attracting investors to the South Pacific nations’ assets. The risk in these so-called carry trades is that currency market moves can erase profits.

Australia’s dollar may strengthen to as high as 86 U.S. cents by the end of the third quarter, Selvanathan said.
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Dollar Forecasts in Dissaray

Forecasts on the direction of the Dollar is in disarray. One strategist says even the best paid professionals out there don't know what is going on.is it the death of the dollar as a reserve currency ...time will tell...

Scalping Forex after the Dow Jones Bell

The first minute after the Dow Jones bell there are easy clues to where EUR/USD, GBPUSD, AUDUSD and just about all other currencies are heading for a minute or two, so with Demo video I show you what scalping can be done for those who can master the game, visit forexbody.com for extraordinary Forex trading ideas, Sorry no audio because when I scalp I do not blink, Basically if I had audio on I would say that I see opportunity and I'm pretty sure of the market direction for next few seconds so I open a large position up, leaving little margin to be lost if I'm wrong, but as my position turns a winner and gives me new margin I can use, I quickly open 2 additional positions in the same direction. I also increase my profit limit a little more. I close my smaller positions manually and my profit limit is triggered just in time before the shark turns around. 20% return on investment in less than 10 minutes at 9:32 am , any business day !

Commodities and Currencies Russia having hard time getting out of the Dollar

crude oil losing steam China Japan and Russia still hooked on US Dollar good demand to US Treasuries , China and Russia do not know where else to invest , Gold is not an alternative , there is just enough gold in the world ...
Howard Simons, of Bianco Research, and Meg Browne, of Brown Brothers Harriman, discuss whether the weak dollar is the reason for a run-up in commodity prices.

Russia has full confidence in the Dollar

June 13 2009 Russia has full confidence in the dollar and there are no immediate plans to switch to a new reserve currency, Finance Minister Alexei Kudrin said.

“It’s too early to speak of an alternative” to the dollar, Kudrin said in Lecce, Italy, in a television interview today after meeting with finance chiefs from the Group of Eight nations. The fundamentals of the dollar are still in “good shape.”

Russia’s central bank said on June 10 some reserves may be moved from U.S. Treasuries into International Monetary Fund debt, reiterating comments made last month by Kudrin. That drove Treasuries and the dollar lower. Kudrin said yesterday that Russia’s announcement on May 26 to buy $10 billion of IMF bonds did not represent “a significant change” in his country’s stance on the dollar.

The dollar declined against a majority of the most-traded currencies as Brazil and Russia joined China in saying they would shift some $70 billion of reserves from U.S. Treasuries into multicurrency bonds. The dollar’s drop also reflected concern that record debt sales and deficits will erode the value of the U.S. currency.

The dollar dropped 0.4 percent to $1.4016 per euro yesterday, from $1.3968 on June 5. The U.S. currency fell 0.2 percent to 98.43 yen, from 98.64 yen a week earlier. The euro was little changed at 137.89 yen, from 137.81 yen.

Dollar MFV $84.28 with the trend line at $85.00.

FOREX VIDEO | NEW YORK SESSION REVIEW | June 11, 2009

Inter-market correlation pointed to a rally on the EUR/USD currency pair during the first 30 minutes of today's US equity market session. The rally broke a downtrend line, and a conservative long trade entry came in the form of a re-test of that former source of resistance. A 60-pip profit was the reward for those who closed the trade after the euro stalled near a psychological level as the London close approached. Those who held the trade through today's 30-year Treasury bond auction, then cashed out at the daily M4 pivot point, earned a greater prize of 120 pips.

Currency Outlook - Dollar's Reserve Status Under threat

The Currency Report : The Dollar Under Pressure
Brazil Russia India and China trying to find alternatives to the dollar as a reserve currency , this is a real threat to the greenback ..Yen and Euro may benefit
Analysis and Discussion with Emma Lawson of Morgan Stanley (Bloomberg News)

Lack Of Direction Within The Money Markets

06/03/09 The money markets continued to seek a direction this session as moxed data led to mixed results.

Red Session For The Greenback Again

06/02/09 The US dollar managed to slide yet again this session as risk appetite continues to flourish.

Dollar Weakens as Reports Spur Higher-Yielding Asset Demand

June 1 (Bloomberg) -- The dollar fell to an eight-month low versus the Australian currency and dropped against the Norwegian krone after reports in the U.S. and China showed global growth may be recovering, sparking demand for higher-yielding assets.

The Japanese yen weakened against all of the 16 most actively traded currencies, as a report showing manufacturing in China expanded for a third month encouraged Japanese investors to buy higher-yielding assets overseas. The dollar fell to the weakest level since October against the pound and the Canadian currency as stocks and commodities advanced after the U.S. manufacturing sector shrank at the slowest pace in eight months.

“This is part of the risk-appetite-recovery story,” said Jim McCormick, London-based global head of foreign exchange and local-markets strategy at Citigroup Inc., in an interview on Bloomberg Radio. “The market started to get concerned about the implications of the fiscal and monetary policies in the U.S.”

The greenback slid 1.5 percent to $1.6440 per pound at 3:30 p.m. in New York, after earlier breaching $1.64 for the first time since Oct. 31. The dollar traded at $1.4167 per euro, from $1.4158 on May 29. It touched $1.4246, the weakest level since Dec. 29.

The dollar’s decline versus the euro was capped at $1.4250, a 50 percent retracement of the drop from the record low of $1.6038 on July 15, to about $1.25 in March, according to Brian Dolan, chief currency strategist at FOREX.com, a unit of online currency trading firm Gain Capital in Bedminster, New Jersey.

“The euro-dollar is in consolidation,” said Dolan. “People will continue to buy the euro on dips.”

Commodity Currencies

The Japanese yen touched 78.33 versus the Australian dollar and 63.02 against the New Zealand dollar, the lowest levels since October, as investors resumed carry trades, in which they buy higher-yielding assets with funds borrowed in low-interest- rate countries. The Standard & Poor’s 500 Index rose 2.6 percent.

Against the dollar, the yen declined 1.4 percent to 96.72, from 95.34 at the end of last week. The Japanese currency reached 137.24 per euro, the lowest since April 6.

The Japanese currency declined against 15 of the 16 most actively traded currencies in the past three months, losing at least 20 percent versus the Brazilian real, the Australian and New Zealand’s dollars, South African rand and the Korean won. Only the dollar did worse.

Currencies of commodity producers led the rally against the dollar today after crude oil advanced as much as 3 percent to $68.29 a barrel.

Norway’s krone appreciated 1.4 percent versus the dollar to 6.2 krone, and touched 6.17, the strongest level since Oct. 14. The Australian dollar reached 81.38 U.S. cents, the strongest since September, while the Canadian dollar reached an eight- month high of C$1.0785. Crude oil is the largest export in Norway. Raw materials account for more than half of exports in Australia and Canada.

Dollar Index

“Commodity currencies are the best place to be, given the signs of the global economic recovery,” said Samarjit Shankar, director of global strategy for the Global Markets group in Boston at Bank of New York Mellon Corp.

The Dollar Index declined to the lowest level this year as the U.S. government said it will own a majority of General Motors Corp. after the carmaker filed for bankruptcy, heightening concern about record debt sales to fund bailout packages and economic stimulus programs. The index, used by the ICE to track the greenback against the euro, yen, pound, Swiss franc, Canadian dollar and Swedish krona, fell as much as 1 percent to 78.59, the lowest since Dec. 18.

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