Forex Flash: Australia retail sales to be AUD sensitive - NAB

According to NAB strategists, the RBA will ease further, "given the outlook for weak growth and rising unemployment" the bank says.

"On today’s retail trade numbers, NAB expects to be AUD sensitive: "The market expects 0.3% for both (NAB forecasts weaker at +0.2% for Q4 and -0.2% for December), so anything weaker than this on either count should see a re-test of 1.04; on appreciably better than expected data, the 1.0458 Tuesday high may be revisited" NAB notes.

Feb 6, 2013

China and Japan tensions remain high; risk trades to be affected?

A Chinese navy vessel has been reportedly making use of a radar designed to aim weapons to a particular target against a Japanese navy ship in the East China Sea, Reuters reports this morning. Both Chinese and Japanese continue to patrol around the islands using fighter jets and ships.

Forex Flash: EUR/USD, selling topside risk around 1.40-1.42 preferable - Societe Generale

According to Sebastien Galy, currency strategist at Societe Generale, "selling topside risk around 1.40-1.20 range in EURUSD is rational and most probably deep downside risk as the ECB is managing credit risk to help policy transmission and willing to pay the price of a somewhat expensive currency."