Climbs for the Aussie and Kiwi were spurred by a U.S. economic report noting sales of new homes increased, which cuts down on the probability of the U.S. Federal Reserve administering more quantitative easing. Demand for both monetary units tapered after a report showed manufacturing is set to slip in China, owner of the world's most quickly developing economic system.
"China in terms of risk appetite, will be less of a positive heading into the end of the quarter," foreign-exchange research global head Callum Henderson with Standard Chartered in Singapore told Bloomberg. "The bad news for the Aussie is that this is not just an issue of seasonals, but it's also an issue of China continuing to slow down."
The Australian dollar's advances remained even after the foreign minister resigned his post, which might indicate he's preparing to challenge the rule of the prime minister.
The Australian dollar endured some loss after unknowns emerged regarding Greece and its prospects for success following the second tranche of international aid since June 2010, according to Dow Jones Newswires.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.