Aussie Mostly Soft as Week Draws to a Close

Australian dollar is mostly softer as the week draws to a close. Aussie has been weakened this week by risk aversion and concerns about what’s happening in the eurozone. Also, recently, the news out of China has been somewhat disappointing, and that has been weighing on the Aussie as well, since the Chinese economy is a major support to the Australian economy.

Aussie is higher against the US dollar today, gaining as a measure of risk appetite returns to the markets. US stocks are showing signs of recovery as earnings news spurs bulls forward. Additionally, the high demand for sovereign debt in the eurozone (even though yields are a bit high) is helping to allay some fears for the 17-nation currency region.
Australian dollar is finding some support against currencies like the dollar and the yen today. However, Aussie is lower against the euro and the pound. The mixed performance is to be somewhat expected, though, as European currencies make a comeback. Against the dollar and the yen, the Aussie’s superior interest rate and high return potential is helping.
At 15:30 GMT AUD/USD is higher at 1.0354, up from the open at 1.0344. EUR/AUD is up to 1.2726 from the open at 1.2705. GBP/AUD is up to 1.5538 from the open at 1.5520. AUD/JPY is higher at 84.64, up from the open at 84.43.

US Dollar Pulls Back as Risk Appetite Returns

Risk appetite is making a comeback in the markets today, and that is sending the US dollar mostly lower. The dollar index is losing ground, and the greenback is lower against many of the majors, especially the European currencies. With better earnings news out of the United States, and with better news in the eurozone, Forex traders are ready for a little risk.

US dollar is pulling back as Forex traders look for better returns, mostly with European currencies and the Down Under currencies. Greenback is down against the euro and the pound right now as the better news results in a return to risk appetite. In the United States, earnings news is driving the markets. Solid earnings data and forecasts for the rest of 2012 have stocks gaining and risk appetite on the rise. This, in term, means a lower US dollar.

On top of that, the euro is getting help from the latest German Ifo data. The business sentiment survey from the Ifo shows that confidence is better than expected. Even though there are concerns about a eurozone recession, it appears that there are still those that are confident in once next. Also helping European currencies is the fact that the IMF has secured Russian funding.

At 14:21 GMT EUR/USD is up to 1.3208 from the open at 1.3137. GBP/USD is up to 1.6132 from the open at 1.6052. USD/JPY is up to 81.6705 from the open at 81.6050.

Australian Dollar Sinks on Falling PPI

The euro was down today on concerns about the outcome of the presidential elections in France. The report that showed the manufacturing index falling to the lowest level in almost three years also had its negative impact on the currency.
Socialist Francois Hollande won the first round of elections, while incumbent President Nicolas Sarkozy was the second. The anti-euro far-right National Front, led by Marine Le Pen, was third, showing that resentment against the eurozone is growing in France.
Markit Economics reported that the eurozone manufacturing Purchasing Managers’ Index slipped from 47.7 in March to 46.0 in April. Such low level was last seen in July 2009. Traders hoped that the index would rise to 48.1.
EUR/USD was down from 1.3182 to 1.3149 and EUR/JPY slid from 107.47 to 106.59 as of 10:22 GMT today.

.Australian Dollar Sinks on Falling PPI

The Australian dollar slumped today as the unexpected decline of producer prices in the first quarter of this year led to speculation that Australia’s central bank will decrease its interest rates on the next monetary policy meeting.

The government report showed today that Australia’s Producer Price Index fell 0.3 percent in the first quarter of 2012 from the previous three months. The report frustrated analysts who anticipated the index to accelerate from 0.3 percent in the fourth quarter of 2011 to 0.5 percent in the March quarter of this year. The decline of the PPI made economists speculate that the Reserve Bank of Australia will cut interest rates during its next monetary meeting in May. In fact, some forecasters say that the potential decrease of the rates in May can be followed by a cut in June.

AUD/USD went down from 1.0368 to 1.0289 and AUD/JPY fell from 84.50 to 83.45 as of 11:09 GMT today.

US dollar is gaining today on the Forex market as traders look for safe haven. Uncertainty is causing problems, and that is prompting traders to look to capital preservation and stability. Greenback is backed by the most stable taxpayer base in the world, so it’s no surprise that it is on the rise today. For the most part, US dollar is higher as traders express uncertainty about what is happening in Europe. European manufacturing contracted in April, as shown by the preliminary composite PMI for the eurozone. The news triggered concerns about eurozone economic growth and resulted in euro selling against the US dollar. Also not helping matters is the possibility of an early general election in the Netherlands (due to budget disagreements) and a runoff in France, with Nicolas Sarkozy in second place. With all this uncertainty, Forex traders are turning to low beta currencies like the US dollar and the Japanese yen. Dollar is gaining the upper hand as traders recognize that the economy is in better shape than the eurozone economy, and as all eyes remain on the eurozone sovereign debt situation. At 14:12 GMT EUR/USD is down to 1.3121 from the open at 1.3185. GBP/USD is down to 1.6093 from the open at 1.6124. USD/JPY is also lower as the yen gains the upper hand: 81.1560 down from the open at 81.5165.

US dollar is gaining today on the Forex market as traders look for safe haven. Uncertainty is causing problems, and that is prompting traders to look to capital preservation and stability. Greenback is backed by the most stable taxpayer base in the world, so it’s no surprise that it is on the rise today.

For the most part, US dollar is higher as traders express uncertainty about what is happening in Europe. European manufacturing contracted in April, as shown by the preliminary composite PMI for the eurozone. The news triggered concerns about eurozone economic growth and resulted in euro selling against the US dollar. Also not helping matters is the possibility of an early general election in the Netherlands (due to budget disagreements) and a runoff in France, with Nicolas Sarkozy in second place.

With all this uncertainty, Forex traders are turning to low beta currencies like the US dollar and the Japanese yen. Dollar is gaining the upper hand as traders recognize that the economy is in better shape than the eurozone economy, and as all eyes remain on the eurozone sovereign debt situation.

At 14:12 GMT EUR/USD is down to 1.3121 from the open at 1.3185. GBP/USD is down to 1.6093 from the open at 1.6124. USD/JPY is also lower as the yen gains the upper hand: 81.1560 down from the open at 81.5165.

US Dollar Gains on Safe Haven Demand

US dollar is gaining today on the Forex market as traders look for safe haven. Uncertainty is causing problems, and that is prompting traders to look to capital preservation and stability. Greenback is backed by the most stable taxpayer base in the world, so it’s no surprise that it is on the rise today.

For the most part, US dollar is higher as traders express uncertainty about what is happening in Europe. European manufacturing contracted in April, as shown by the preliminary composite PMI for the eurozone. The news triggered concerns about eurozone economic growth and resulted in euro selling against the US dollar. Also not helping matters is the possibility of an early general election in the Netherlands (due to budget disagreements) and a runoff in France, with Nicolas Sarkozy in second place.

With all this uncertainty, Forex traders are turning to low beta currencies like the US dollar and the Japanese yen. Dollar is gaining the upper hand as traders recognize that the economy is in better shape than the eurozone economy, and as all eyes remain on the eurozone sovereign debt situation.

At 14:12 GMT EUR/USD is down to 1.3121 from the open at 1.3185. GBP/USD is down to 1.6093 from the open at 1.6124. USD/JPY is also lower as the yen gains the upper hand: 81.1560 down from the open at 81.5165.

Traders Shun Risk on French Elections, Loonie Weakens.

The Canadian dollar fell against the US dollar and the Japanese yen today on concerns about the French elections. The currency trimmed its losses, but remains below the opening price for now. The loonie rose versus the euro.

Risk aversion prevails in the Forex market today as the presidential elections in France make investors concerned about the futures of the eurozone. There are also plenty of other reasons to worry about Europe, but France is currently on the forefront of news headlines. The Standard & Poor’s 500 Index was down 1 percent. Other growth-related assets also suffered.

Not all is bad for the Canadian currency. The Bank of Canada maintained interest rates unchanged last week, but the statement was surprisingly hawkish. An interest rate hike is expected next month and such expectations are likely to support the loonie in the immediate future.

USD/CAD was up from 0.9917 to 0.9978 before trading at 0.9938 as of 15:51 GMT today. CAD/JPY dropped from 82.08 to 81.60, following the fall to 81.20. EUR/CAD slipped from 1.3071 to 1.3048, erasing the earlier advance to 1.3121.

Pound Goes Higher vs. Euro as Future of Europe Still Uncertain

The Great Britain pound rose against the euro and erased its losses versus the US dollar as fears of Europe’s troubles drove investors to the relative safety of the UK currency. The sterling retreated a little against the greenback today and continued to fall versus the Japanese yen.

The elections in France spooked Forex traders and made them search for a refuge. The possibility of early elections in Netherlands added to concerns. Some of market participants found haven in Britain’s currency.

The United Kingdom has its share of problems that may affect the pound negatively in the future. On the other hand, Britain’s economy looks to be improving somewhat. Analysts predict that gross domestic product rose 0.1 percent in the first quarter of this year. That’s not fast growth, but still is better than the decline by 0.3 percent in the previous three months.

GBP/USD was at 1.6121 as of 00:43 GMT today after rising from 1.6120 to 1.6131 yesterday. EUR/GBP traded at about 0.8158, following yesterday’s slump from 0.8176 to 0.8158. At the same time, GBP/JPY fell from 130.92 to 130.84.

Traders Sell Won in Favor of Dollar on European Politics

The South Korean won fell today as concerns about the political situation in Europe caused traders to sell riskier assets of Asian nations in favor of safer ones, including the US dollar.

Current French President Nicolas Sarkozy lost the first round of presidential elections, while the anti-euro National Front had unexpectedly high support of voters. Dutch Prime Minister Mark Rutte offered to step down yesterday as his attempts to implement austerity measures were met with resistance. Forex traders are buying the dollar as a shelter against the European problems, while riskier currencies find less demand. The tension between North and South Koreas doesn’t help the won either.

USD/KRW rose from 1,139.6000 to 1,140.9000 as of 8:47 GMT today, while the intraday high was 1,142.5000.