Forex.com’s Kathleen Brooks predicts it might take a few weeks for Mr Market to get comfortable with AUD/USD at parity.
Well at least the QE2 revelation, which was sufficiently in line with expectation, is now behind us. Dow up 26, Aussie now worth more than the greenback.
Stong capital flows have boosted Asian currencies against the US dollar in recent months and with policy normalisation measures expected to continue Commonwealth Bank sees this trend continuing.
Anticipation of a Republican landslide along with QE2 comfort pushed stocks higher and the US dollar lower last night. Dow up 64.
China has to act on its currency or a conflict with the US will become inevitable, argues Director of the Peterson Institute for International Economics, Fred Bergsten.
The Dow was both up 125 and down 55 last night before closing flat as the buyers and sellers battled it out ahead of this week’s major events. Dow up 6.
A wrap of events affecting the market on Friday night and the weekend and a preview of the week ahead.
FNArena welcomes ATW’s Jerry Simmons as new contributor. Simmons opens with a warning shot on the Aussie dollar.
Another big drop in the US dollar suggested QE2 positioning last night but stocks were unmoved. Dow down 12.
More talk from the “not quite as big as you think” camp on QE2 had the US dollar up and stocks down last night. Dow down 43.