Daily FNArena News - Currencies

While the Australian dollar has bounced against the US currency since late last month the gains are seen as unsustainable given growth concerns and the potential for a rate cut.

Market analysts at FXCM note while the Euro crisis appears to be deepening there is scope for the euro to continue enjoying a relief rally.

Market analysts at FXCM suggest the outlook for the Australian dollar remains bearish as the latest RBA comments suggest an increasing willingness to cut interest rates.

A combination of possible rate cuts by the RBA and a stronger US dollar suggest to CBA the Australian dollar could temporarily dip below US90c.

Market analysts at FXCM suggest the euro is close to a major fall as investors continue to factor in a negative outcome from the current sovereign debt crisis.

Analysis by FOREX.com suggests the euro may have further to fall if the EU disappoints on its latest rescue plan, as the currency is still vulnerable to risk sentiment.

Market analysts at FXCM warn the threat for Japanese intervention in FX markets is once again on the rise.

Market analysts at FXCM suggest with the Australian dollar reversing its recent rally against the US dollar the focus is now on the USD101.10 level.

Market analysts at FXCM take the view AUD/USD has broken support and thus offers a trade opportunity.

Given the US dollar rises when the US economy enters or threatens to enter a recession, and to reflect the current issues in Europe, CBA has revised its currency forecasts.