Stocks and Dollars

AUD/USD is close to reaching the lower boundary of the Forecast Zone that was calculated for the completion of the daily Down Channel chart pattern identified by Autochartist on the daily charts. This chart pattern continues the prevailing uptrend visible on the daily, weekly and the monthly charts. The high

Presumably, the price has started formation of the correctional wave (b) of [iv]. Probably, it will take the form of the Zigzag in which frameworks the impulse an of (b) comes to the end. If the assumption is true, within the limits of its end it is possible to expect

Euro 1.4095 Initial support at 1.3981 (Mar 18 low) followed by 1.3942 (61.8% retrace of 1.3752-1.4249). Initial resistance is now located at 1.4215 (Mar 23 high) followed by 1.4249 (Mar 22 high)

U.S. Dollar Trading (USD) The weak USD theme continued with investors searching for riskier trades with higher returns. The High Yielding Aussie hit all time highs as stock markets continue to push higher. March ADP Employment was solid at 201k vs. 203k previously. In US stocks, DJIA +71 points closing

The risk-seeking mood of the past two weeks continued, pushing equities and risky currencies higher. The S&P500 is up 0.8%, only 0.9% away from the February cycle high. The CRB commodities basket is unchanged, gains in precious metals off setting oil (-0.3% on higher inventories) and copper (-1.7% on lower

Yen crosses have surged higher following the historic coordinated intervention on March 18th. With loose BoJ monetary policy direction now a given in the foreseeable future, widening relative interest rate differentials between the BoJ and other major CBs have reinstated the carry trade as a major FX theme for 2011.

The dollar was softer as risk sentiment continued to improve and investors searched for yield. Fed speak continued as known hawk and Kansas City Fed President Thomas Hoenig was on the wires suggesting the Fed reduces its stimulus measures. We would note that Hoenig is not an FOMC voting member

U.S. Dollar Trading (USD) The weak USD theme continued with investors searching for riskier trades with higher returns. The High Yielding Aussie hit all time highs as stock markets continue to push higher. March ADP Employment was solid at 201k vs. 203k previously. In US stocks, DJIA +71 points closing