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The Recession continues as Geithner takes heat - November 20, 2009 11/20/09 08:38 AM - Jobless Claims are still at Recessionary levels. Geithner takes Congressional Heat. The FDIC Quarterly Banking Profile will be released next Tuesday. More Treasury supply before Turkey Day and the Daily stock charts

PM Exchange - BONY Mellon's Woolfolk comments on central banks' remarks 11/19/09 06:27 PM - Forex TV - Michael Woolfolk discusses Geithner hearing and leading indicators. JPY rose to a two-week high vs. EUR.

Forex TV's Equities & Commodities - Nov 19 11/19/09 06:23 PM - Forex TV - Stocks lose for a 2nd day on recovery concerns and profit taking. Oil eases off on USD strengthening in intraday action.

Forex TV's Markets Review - Nov 19 11/19/09 06:21 PM - Forex TV - ValuEngine's Richard Suttmeier responds to Geithner's testimony and discusses "The Great Credit Crunch" and equity key levels.

Forex TV's Markets Review - Nov 19 11/19/09 06:21 PM - Forex TV - ValuEngine's Richard Suttmeier responds to Geithner's testimony and discusses "The Great Credit Crunch" and equity key levels.

New York Forex Market Buzz - Nov 19 11/19/09 06:12 PM - Forex TV - Host Tim Kelly interviews BMO Capital Markets' Global FX Strategist, Andy Busch. Busch recaps the economics events of the week, and looks ahead to next week.

Australian Dollar Climbs As RBA Boosts GDP Forecast
11/06/09 12:48 am (EST)

(RTTNews) - During early Asian deals on Friday, the Australian dollar climbed against its major counterparts as the Reserve Bank of Australia boosted its forecasts for economic growth for the coming year and indicated more interest rate increases are on the way.

The aussie jumped to a new multi-month high against the NZ dollar, 3-day high against the Canadian dollar and a 2-day high against the greenback, euro and the yen.

In its quarterly Statement on Monetary Policy, the central bank's forecast of GDP growth was expanded to 1.75 percent to the end of calendar year 2009, compared to its previous forecast of 0.5 percent growth.

The RBA said it projects growth in 2010 will rise to 2.25 percent for the year to June and 3.25 percent by the end of 2010. The bank's August forecast predicted a growth rate of 1.0 percent to mid-2010 and 2.25 percent for full 2010.

The central bank is optimistic about Australia's recovery path, saying growth in business investment and exports is expected to be strong, underpinned by an ongoing expansion in the resources sector and a bounce back in Asian economies, particularly China.

The RBA said it expects inflation to continue to moderate, in the wake of a slowdown in wage growth and lower prices for imported goods. Underlying inflation, which excludes volatile items, is expected to drop to 2.25 percent by the end of 2010 from a projected 3.25 percent at the end of 2009.

The headline consumer price index, which includes more volatile prices such as gasoline, will hold within that target range through to the June quarter of 2012.

On the future of interest rates, the RBA strongly hinted that more rate hikes were on the horizon, following increases of 0.25 percent at each of the last two monthly meetings.

"The board has judged it prudent to lessen the degree of monetary stimulus that was put in place when the outlook appeared much weaker," the statement said. "The cash rate remains at a low level, and a further gradual lessening of monetary stimulus is likely to be required over time if the economy evolves broadly as expected."

The Board will continue to monitor developments closely and set monetary policy so as to promote sustainable growth in the Australian economy and keep inflation consistent with the medium-term target, the RBA said.

The aussie also edged higher as a rise in Asian stock prices boosted demand for higher-yielding currencies.

Stock markets across the Asia-Pacific region are trading firm today with the overnight rally on Wall Street significantly buoying up sentiment. The sharp upward revision in economic growth forecast by the Australian central bank and better-than-expected employment and productivity reports from U.S. appear to have erased some concerns about the pace of global economic recovery.

Most of the markets in the region are trading with fairly sharp gains right since trading commenced on Friday. There appears to be some resistance at higher levels in some markets, but that has not resulted in any significant sell-off as such.

The Australian market is trading firm, aided by notable gains posted by bank, materials, energy and industrials stocks. The benchmark S&P/ASX 200 index is up 63.2 points, or 1.7%, at 3,757.5. The broader All Ordinaries index trading at 4,595, up 75.8 points, or 1.7%, over its previous close.

Against the US dollar, the Australian currency edged higher to a 2-day high of 0.9138 during early Asian deals on Friday. The next upside target level for the pair is seen around 0.921. The aussie-dollar pair closed Thursday's North American session at 0.9105.

The aussie-dollar pair that hit a 25-day low of 0.8909 on November 2 strengthened thereafter and has gained around 3% thus far.

The Australian dollar reached a 2-day high of 1.6287 against the European currency during today''s early Asian deals. The Australian currency is currently trading at 1.6301 against the euro with 1.619 seen as the next resistance level. The euro-aussie pair closed Thursday's trading at 1.6343.

Against the Japanese yen, the aussie rose to a 2-day high of 82.88 during Friday's early Asian deals. On the upside, 84.8 is seen as the next target level for the aussie. The aussie-yen pair closed Thursday's New York deals at 82.61.

The aussie-yen pair that slipped to a 25-day low of 79.51 on November 2 has gained around 4% since then.

The Japanese leading index rose to 86.4 in September from 83.2 in August, a preliminary report from Cabinet Office showed toay. The leading index improved for the seventh consecutive month and stood above the expected level of 86.2.

At the same time, the coincident index stood at 92.5, up from 91.2 in August. The reading came in line with economists' expectations. The preliminary estimate showed that the lagging index climbed 0.3 points to 84.5 in September.

The Australian currency showed strength against its Canadian counterpart during today's early Asian deals. At 9:40 pm ET, the aussie-loonie pair climbed to a 3-day high of 0.9736, compared to Thursday's closing value of 0.9700. If the pair gains further, 0.980 is seen as the next target level.

The Aussie advanced to 1.2678 against the New Zealand dollar during Friday's early Asian trading. This set the highest point for the pair since August 4, 2009. The next upside target level for the Australian currency is seen at 1.269.

The Australian currency that plunged to a 9-month low of 1.1944 on October 6 reversed direction thereafter. Since then, the pair has appreciated around 6%.

In the European session today, the French trade balance and the German factory orders are due for release.

Across the Atlantic, the U.S. Labor Department is scheduled to release its monthly non-farm payroll report at 8:30 AM. Economists estimate that the U.S. economy lost 175,000 jobs in October and look for an unemployment rate of 9.9%.

The Commerce Department is due to release its wholesale inventories report at 10 am ET. Economists expect wholesale inventories at the end of September to show a 1% decline. At 3:00 pm ET, the U.S. Federal Reserve is expected to release its monthly consumer credit report. Consumer credit for September is likely to show a decline of $10.3 billion.

Federal Reserve Board Gov. Elizabeth Duke is scheduled to deliver the keynote address to the Chicago Fed's 5th annual Community Bankers Symposium at 3 pm ET.

From Canada, employment data is due at 7 a.m. ET. An increase of 10,000 jobs is expected, compared to an increase of 30,600 a month earlier. The unemployment rate is expected to remain at 8.5%.