FOREX News and Overnight Technical Levels - August 8th

[B][U]Fundamental Headlines[/U][/B]

  • [B]AUDUSD[/B] - Reserve Bank of Australia elects to raise rates 25 basis points to 6.5 percent.
  • [B]USDJPY[/B] - Japanese machine tool orders report plunges by 17.9 percent. The lower figure compares to expectations of a 9.3 percent dip and may affect the Bank of Japan interest rate decision expected for next month.
  • [B]GBPUSD[/B] - Sterling rallies on speculation that further rate increases will be needed in the UK economy. Implied sentiment is already beginning to price in another rate hike past 6 percent, expecting a 25 basis point hike in the next 3-6 months. The shift is compared to recent sentiment of a stall at one more rate hike.
  • [B]EURUSD[/B] - German trade balance contracted in the month, however remains strong on exports. Figure lends to notions that recent appreciation in the Euro has little effect on export sector growth.
    -[B] China[/B] today threathened to use $900 billion worth of Treasury assets as a defense should US lawmakers push for further trade sanctions and revaluation. Tactic may be the last jawboning effort before physical retaliation. As a result, the dollar is somewhat pressued against the majors in New York morning.