Currencies

ANZ economists expect rising commodity exports to force the RBA’s hand into a much more restrictive monetary policy setting.

While stocks recovered from a weak US consumer confidence survey the US dollar fell, allowing gold to push through the US$1300 mark. Dow up 46.

Moody’s and Bob Prechter conspired to send Wall Street lower last night after the big Friday rally. Dow down 48.

A wrap of events affecting the market on Friday night and the weekend and a preview of the week ahead.

Commonwealth Bank forex analysts are forecasting parity for the Aussie next year.

A weak European PMI reading swung the focus back to the other side of the Atlantic last night. Dow down 76.

With the RBA in a hawkish mood, the Aussie seems destined to hit parity. But this has varying implications for stocks, inflation, the trade balance and monetary policy itself.

Currencies have been leading other financial markets since early 2008, so positive moves by EUR/USD could be the harbinger for more positive moves elsewhere.

No QE2 yet, but at the ready to attack not just economic contraction but simple low inflation. Dow up 7.

Charlie Chartchecker predicts the rise and rise of the AUD will be put to some serious tests in the weeks ahead.