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Aussie Pushed Lower As RBA Keeps Interest Rates At Record Low

Published 09/02/2014, 06:10 AM
Updated 03/09/2019, 08:30 AM

Currencies

  • The EUR reached a new at 1.3113 against the USD. The single currency remains under pressure and formed its new resistance at 1.3145, while is now trading at around 1.3120.
  • The US dollar (USD) started its weekly session at 104.15 and climbed up to 104.86 against the JPY. The pair reached a nine month low on speculation that Japan may reform its pension funds.

Equities

  • The Asian indices advanced, with the Indian 50 recording a new record high at 8090, the China 50 is trading around 7210 and Japan 225 is near 15700.

Commodities

  • Corn fell from its weekly high at 369 down to 361 US dollars per bushel, as there is increased demand from US while supplies from the Black Sea may be interrupted due to the tensions in Ukraine.

Mover And Shaker With Forex Options

  • The Australian dollar slid around 70 pips and reached its low at 0.9284 against the US dollar (USD). The aussie dollar declined after the Reserve Bank of Australia (RBA) kept its interest rates at 2.5%, at their record low. In addition, the RBA governor, Glenn Stevens, stated that an overvalued currency hurts the economy.
  • Option traders may consider constructing a Long Straddle on the AUD/USD and gain if the pair moves in either direction, while the risk is limited to the premium paid.
  • A Long Straddle can be constructed by buying an at the money Call and Put.

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