Greenback Drops Against New Zealand And Australian Counterparts, Monday, July 23, 2007 12:15:03 AM

In the early Asian session on Monday, the U.S. currency dropped against its Australian, New Zealand and the Canadian counterparts. But the Greenback moved sideways versus the Singapore dollar. The Australian Q2 PPI data which was released during the session pushed the Greenback to trade lower against the Aussie.

The Australian Bureau of Statistics said that the Australian Producer Price Index rose 1.0% sequentially in the second quarter, after remaining unchanged in the previous quarter. On an annual basis, the PPI gained 2.3%, compared to a 2.8% increase in the prior quarter.

On Sunday deals, the Greenback showed a mixed performance. While the Greenback strengthened slightly versus the Aussie, it was down against the Canadian dollar. On the other hand, the Greenback showed choppy trend versus the rest of majors.

The U.S. currency showed choppy trading versus the New Zealand Kiwi on late Sunday in New York. However, in the early Asian deals on Monday, the Greenback lost ground. At about 8:35 pm Eastern Time, the Greenback picked up some pips but it edged down within an hour. As of 12:12 am ET, the pair collected 0.7985.

During late Sunday in New York, the U.S. currency gained slightly against its Australian counterpart. But the gains were given back in the early Asian session on Monday. The Greenback made a brief spike higher by about 8:55 pm Eastern Time and this came ahead of the release of the Australian Q2 PPI data. However, amid the release, the Greenback slipped again and as of 12:12 am ET, it was worth 0.8810.

The U.S. currency trended lower versus the Canadian dollar in the late hours on Sunday in New York. The Greenback extended its downtrend in the early Tokyo deals on Monday and fetched 1.0466 as of 12:12 am Eastern Time.

Against the Singapore dollar, the U.S. currency moved sideways during late Sunday trading in New York. However, during the early Asian deals on Monday, the Greenback slid briefly but it followed a sideways movement soon after which was limited between 1.5112 to 1.5121. As of 12:12 am Eastern Time, the pair traded at 1.5115.

Copyright © 2007 RTTNews.com. All Rights Reserved.

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Euro Down Against Franc, Higher Versus Rest Of Majors Tuesday In Europe, Tuesday, July 10, 2007 5:29:45 AM

The euro remained lower across the board during the early Asian deals on Tuesday but it gained momentum towards the end of the session.

The euro remained higher in the early European deals despite releases of weak data from France and Germany. The French May industrial production and German June wholesale price index hit numbers lower than estimated by the markets.

However, of late, the euro gave back its gains against the Swiss franc but continued higher versus the pound despite a stronger-than-expected British trade balance data for May, which has been released at 4:30 am ET.

The euro trended lower against the US dollar during the early Asian deals on Tuesday. However, at about 1:00 am ET, the pair reversed its direction and moving from 1.3593, it has fetched as high as 1.3652 lately. As of now, immediate resistance and support levels are seen around 1.3657 and 1.3600 respectively.

The euro weakened against its British currency in the early Asian deals on Tuesday but the pair rallied in the European session. Rising from 0.6749, the pair has lately equaled 0.6758 and if continues upward, 0.6775 can likely be a level of resistance in the near term. The British trade deficit data which narrowed more than expected in May failed to stop the upward journey of the single currency versus the pound.

The European currency traded down against the Japanese yen in the early Tokyo deals on Tuesday but the pair rebounded in the European trading hours. The euro gained ground against the yen despite weak data releases from the German and the French economies, and rising from a session`s low of 167.71, it has fetched 168.31 a short while ago. Largely, the pair has knocked a level a tad below the record high of 168.48 hit on Monday and if it falls from this level, 167.30 can likely be a key support level.

Against the Swiss franc, the euro remained slightly weak in the early Asian deals on Tuesday but the pair improved toward the end of the session. However, of late, the has dropped the gains and is now trading near 1.6560 against the session`s high of 1.6584 collected at about 2:05 am ET. If moves further downward, 1.6550 can probably be a level of support in the near term.

Copyright © 2007 RTTNews.com. All Rights Reserved.

Bank Of Korea Raises 2007 Growth Forecast To 4.5%, Tuesday, July 10, 2007 4:47:04 AM

The South Korean economy is forecasted to expand 4.5% in 2007 on the back of solid exports and higher domestic spending, the Bank of Korea said Tuesday. This was a percentage point higher than the 4.4% growth predicted in December. The central bank reiterated its projection made in the March monetary policy statement released on May 14, that GDP will likely advance 4.7% in the second half. The first half growth was revised upward to 4.4% from the 4.0% increase estimated in the policy statement.

Domestic Spending, Exports To Grow

Domestic spending is expected to rise 4.1% in 2007, slightly below the 4.2% growth a year ago. Exports will likely register 11.0% growth on the back of stronger overseas demand. Last year, exports grew 12.6%. Growth in imports is projected to moderate to 10.2% from 10.8% last year.

The central bank believes that construction activity will pickup significantly, with investment in this sector expected to gain 2.0% annually, reversing the 0.4% decline a year ago. Corporate capital spending is another area that the bank expects to recover in 2007, with an expected 7.5% growth, from the 7.6% decline last year.

The jobless rate is projected to narrow to 3.3% in 2007, from 3.5% last year.

South Korea`s first quarter gross domestic product expanded 0.9% sequentially and 4.0% over last year. The economy grew by identical margins in the previous quarter, while logging 5.0% growth for the year 2006.

Private consumption rose 4.1% annually in the first quarter due mainly to a surge in household spending on durables and services, the central bank said last month.

Gross fixed capital formation gained 2.0%, up from 1.2% rise in the December quarter, with facilities investment rising 4.4% on a quarterly basis compared to a 0.1% gain in the previous quarter. On a year-over-year basis, facilities investment rose 10.8%, while construction showed a growth of 3.9%.

Due to a diversified export base both in terms of market and product, South Korea`s export sector has survived a US slowdown in the first half year, analysts say. Merchandize exports expanded 14.4% annually in April-May almost unchanged at 14.6% growth in the first quarter.

Inflation Pressure Shows Up

Meanwhile, the bank expected an upsurge in consumer inflation due to increasing international commodity prices and higher pressure on the demand side.

Consumer prices will likely rise 2.4% annually, up from 2.2% last year, the bank said. Core consumer prices, excluding agricultural products and oil prices, are projected to advance 2.3% in 2007, compared to a 1.8% increase in the previous year.

The South Korean Consumer Price Index - CPI narrowed to an annualized 2.3%, below the expected rate of 2.4% in May, a government report indicted last month. In April, the CPI climbed 2.5% from a year ago. On a monthly basis, the index edged up 0.1% in May, down from 0.4% growth in April.

Service Account Deficit To Impact Current Account Surplus

The central bank predicted that the current account surplus will reach US$2 billion in 2007, in line with an initial forecast, but below last year`s surplus of US$6.1 billion. The expected fall in surplus is due to the widening of the service account deficit, particularly in travel account.

The trade surplus is likely to be US$31.5 billion on strong exports, despite rising imports and raw material costs, the bank said. However, the service account deficit will expand to US$29.5 billion, up from U$23.1 billion last year.

BoK To Meet Thursday For Policy Decision

Meanwhile, the BoK`s Monetary Policy Committee is scheduled to meet Thursday for its next policy decision. In June, the central bank retained the key rate at 4.5% for the tenth consecutive month. A certain section of the market expects the central bank to raise interest rates this time in view of its revised outlook on growth and inflation.

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Greenback Declines Against Singapore And Malaysian Counterparts, Choppy Versus Hong Kong Dollar, Tuesday, July 10, 2007 3:27:06 AM

The U.S. currency declined against its Singapore and the Malaysian counterparts during the early Asian deals on Tuesday. The downtrend pushed the Greenback to touch the 2-month low versus the Singapore dollar and the 1-week low versus the Malaysian Ringgit. On the other hand, the Greenback dropped slightly against the Thai Baht, but it showed choppy trading versus the Hong Kong dollar.

The Greenback was lower against the Singapore dollar amid the release of the Singapore Q2 GDP data. In the second quarter, the Singapore economy expanded 8.2% annually, following 6.4% growth registered in the first quarter.

Against the Indonesian Rupiah and the Philippine peso, the Greenback showed slight weakness during the early deals, but it largely traded in a loose range. However, the Greenback ticked higher versus the Indian Rupee, but it was down against the South Korean Won.

The US wholesale inventories for the month of May is slated for later in the morning.

Against the Singapore dollar, the U.S. currency fell sharply in the early Asian deals on Tuesday and this was likely influenced by the Singapore Q2 GDP data. The downtrend pushed the Greenback to touch the 2-month low of 1.5163 at 9:10 pm ET Monday. Thereafter, the pair gained some pips but it moved sideways within two hours.

After a brief uptrend, the U.S. currency edged lower versus the Hong Kong dollar during the early Tokyo deals on Tuesday. Off 7.8151 at 10:15 pm ET Monday, the pair reversed most of its losses and fetched 7.8167. The Greenback then slipped slightly again. Largely, the pair showed choppy trading during the Asian session.

In the early Asian deals on Tuesday, the U.S. dollar held steady against the Thai Baht, but the pair lost ground at 8:35 pm Eastern Time Monday. The dollar thus moved from 33.82 to 33.47 within one and half hours. Soon after, the pair strengthened slightly and followed a sideways movement.

The U.S. dollar trended lower versus the Malaysian Ringgit in the early Asian session on Tuesday. The pair hit the 1-week low of 3.4320 by about 10:10 pm ET Monday and then showed a choppy trend.

Drifting lower in the early Asian deals on Tuesday, the U.S. dollar traded at 0.8989 against the Indonesian Rupiah by about 11:15 pm ET on Monday. But the pair bounced back completely soon after and entered a loose range which was limited between 0.9002 to 0.9025.

The U.S. dollar gained slightly versus the Philippine peso during the early Tokyo deals on Tuesday. However, at about 8:45 pm ET Monday, the gave back the gains and thus it dropped from 46.10 to 45.90. The dollar then moved sideways.

After a brief slid, the U.S. dollar held steady against its Indian counterpart in the early Asian session on Tuesday. But the dollar ticked up at 11:30 pm ET Monday and collected as much as 40.43 by about 1:25 am Eastern Time. Thereafter, the pair traded sideways.

During the early Asian deals on Tuesday, the U.S. dollar made a steep fall versus the South Korean Won and touched a low of 919.00 by about 1:35 am ET. The pair then reversed most of its losses, but it is currently holding steady at 921.60.

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Australian Dollar Slightly Lower Across The Board, Tuesday, July 10, 2007 1:31:38 AM

The Australian dollar traded slightly lower against its major counterparts in the early Tokyo deals on Tuesday. The Australian NAB business confidence data for June which was released during the session weakened the Aussie further against the Euro and the Loonie, but it advanced slightly versus the Yen. On the other hand, the data caused very little price effect in the Aussie-Greenback pair.

German June wholesale price index, French and the Italian industrial production for May are the key economic events expected during the upcoming European session.

The Canada housing starts data for June and the Bank of Canada rate decision are slated for later in the morning. The central bank is expected to raise interest rates.

The Australian dollar showed choppy trading against its U.S. counterpart on late Monday in New York. The Aussie extended the same trend in the early Asian deals on Tuesday, but by about 10:05 pm ET it ticked down. Of late, the pair has been moving further lower and as of 1:30 am Eastern Time, it was quoted at 0.8574.

On late Monday in New York, the Australian dollar ticked up slightly versus the Euro. But the gains were given back in the early Asian session on Tuesday and slipped further. As of 1:30 am Eastern Time, the pair collected 1.5868.

Against the Canadian dollar, the Aussie moved sideways during late Monday in New York. However, in the early Tokyo deals on Tuesday, the pair made some advances and collected as much as 0.9042 at 8:50 pm Eastern Time. Soon after, the Aussie gave back the recent gains completely and lost ground further. As of 1:30 am ET, the pair was worth 0.9014.

The Australian dollar traded sideways versus the Japanese Yen on late Monday in New York. At about 7:00 pm Eastern Time, the pair started to weaken but it strengthened slightly within two and half hours. The Aussie edged down again at about 10:10 pm ET and has been continuing its downtrend lately. As of 1:30 am ET Tuesday, the pair fetched 105.79.

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Canadian Dollar Remains Weak Across The Board In Asian Deals On Tuesday, BoC Rate Decision In Focus, Tuesday, July 10, 2007 1:10:17 AM

The Canadian dollar remained weak against its major counterparts during the Asian deals on Tuesday. The major loonie-pairs trended down amid a lack of data from Japan but the NAB business confidence data for June and home loans data for May from Australia have helped the Canadian dollar change its direction against the Aussie recently.

The Canadian currency that lost ground in the European session on Monday is now testing near term supports against its major counterparts ahead of June month housing starts and Bank of Canada rate decision expected later in the morning.

The Bank of Japan is also set to revise its monetary policy this week followed by a press conference by its governor Thoshihiko Fukui.

As a rate hike by the BoC and a hold decision by the BoJ have already been priced in, investors will be listening to the voice of both the central banks to have a clear picture regarding their future plans.

High commodity prices and strong housing market are estimated to remain a concern for the Canadians, while an upwardly moving global economy and growing concerns among country`s importers regarding a very cheap yen are anticipated to influence the Japanese.

The Canadian dollar weakened against the US currency during the early Asian deals on Tuesday. The pair that lost ground in the European session on Monday has moved to 1.0508 from 1.0453, lately. This is a level of support in the near term and if the pair moves further downward, 1.0550 can be the next likely target.

Against the Japanese yen, the Canadian dollar weakened during the Tokyo deals on Tuesday. The loonie had lost ground against its Japanese counterpart in the European session yesterday and has fallen to 117.27 from 118.18 since then. Further downside, 116.8 can likely be a target for the Canadian currency in the near term.

The Canadian dollar trended down against its Australian counterpart in the Asian session on Tuesday. Compared to yesterday`s European session high of 0.8972, the pair fetched as low as 0.9034 at about 8:40 pm ET. However, the Australian data followed has helped the loonie reverse a few of these losses and has been lately quoted around 0.9000 against the Aussie.

Against the euro, the Canadian dollar remained weak in the early Asian deals on Tuesday. Moving down from Monday`s European session high of 1.4247, the pair has lately reached a level of 1.4310. Downside, 1.4330 can likely be the nearest level of support for the loonie. Investors expect a rather quiet European session today.

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