The AUDUSD surges following a hawkish tone from Reserve Bank of Australia Governor Glenn Stevens at a speech in Sydney titled Challenges for Economic Policy.

  • Governor Stevens described the nation's economy to be doing better through the global downturn than any other developed economies, informing his audience that the unemployment rate rose at slower pace than expected and that the domestic downturn may not prove to be a serious one.  The RBA's shift from a dovish to a neutral stance, sends the message that the central bank is now actively looking for the right time to raise the interest rates.
  • The AUDUSD dropped about 30 pips to 0.8200 from the Asian open price on profit taking prior to the Steven's speech.  The pair then rallied past this year's prior high at 0.8265 breaking above 0.8300 as of 05:30GMT.
  • US data showed US new home sales posted their biggest monthly gain in eight years in June, sending the Dow Jones US home construction index up 4.3%.
  • Deutsche Bank released their better than estimated second-quarter earnings this morning, posting a 68% increase in their profits on increased revenue from trading bonds and stocks.  CEO Ackermann's said that the progress in the global economy strongly influences the outlook for the bank for the remainder of 2009.

Currency to watch out for: EURUSD & AUDUSD

  • The EURUSD pivot point is at 1.4225 with a preference to enter into long positions at 1.4235
  • The AUDUSD pivot point is at 0.8250 with a preference to enter into long positions above 0.8250

Today's calendar and market movers:

  • UK CBI Realized Sales expected to rise to -12
  • US Case-Shiller House Price Index expected to rise to -17.8%
  • US Consumer Confidence expected to drop slightly to 49.1

Now onto Stocks:

  • US stocks ends slightly higher with the Dow up 0.2%, S&P up 0.3% and the NASDAQ higher by 0.1%
  • As of 06:10 GMT the Nikkei is at -0.01% and the Hang Seng at 0.7%