Monday, 5 September 2011


Markets have continued to show signs of weakness in the Asian session after catastrophic numbers in the US jobs data published Friday evening have many economists muttering the word recession.

EURUSD opened at 1.4200 and traded down to lows of 1.4140 as Europe’s debt crisis is worsens as Italy backtracks on austerity pledge. The recent bailouts have so far failed to convince investors that policy makers will protect the monetary union, investor George Soros was quoted as saying that “a collapse of the euro would cause turmoil in the global markets”.

The AUDUSD has traded down from highs of 1.0667 at the beginning of the session to as low as 1.0571 at lunchtime as investors show reluctance to trade in riskier assets as Europe’s debt crisis continues to be in the news across the globe. Today German Chancellor Angela Merkel’s party suffered another setback in the local election as they lose their fifth election to rival parties.

The NZDUSD opened ten points weaker that Friday close as Asian equities continue to slid after a negative lead from Wall Street on Friday. The kiwi has bounced off lows of 0.8408 today and at time of writing this report it was trading at 0.8443.

Both the pound and the euro have been weak against the yen today as investors look to the currency as a safe haven. At time of writing this report both were near day lows with the GBPJPY trading at 124.10

CURRENCIES
Last Traded
AUDUSD 1.0588
EURUSD 1.4160
GBPUSD 1.6172
USDJPY 76.73
Source Bloomberg and
Dow Jones Newswire