ANZ Bank suggests the Aussie dollar will move beyond parity against the US dollar in coming months but doesn’t see the strength as last much into 2009.
The Dow closed down 92 in another volatile session which saw oil fall over US$6.
The market sees the British Pound at much lower levels against the US dollar in the year ahead and SVB’s Joe O’Leary couldn’t agree more.
An early rally spurred by Fannie and Freddie failed last night as traders realised the overall implications. Regional banks were crucified. The Dow fell 45.
The Dow closed down 128 having been down 250 on rumours surrounding the US mortgage lenders and Israeli jet fighters.
The Dow rose 81 points in other volatile session as oil spiked suddenly and financials stared death in the face.
The S&P 500 crashed into official bear market territory last night led down by the financial sector. The Dow fell 236 points.
The previously bullish picture for the Aussie dollar is becoming more clouded with recent weakness in commodity prices, ANZ suggesting any correction would likely drag the Aussie dollar down as well.
Oil fell over US$5 last night as a coordinated Bernanke/Paulson/Dimon rhetorical effort bolstered the greenback and turned the financial sector on its heels. The Dow rallied 152.
It was a wild night on Wall Street as investors traded off a lower oil price against more financial sector weakness. The Dow closed down 56 points.