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Australian Forex And Binary Options Markets Rebound

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Australian forex and binary options markets have rebounded slightly today on hopes that the Italian election mess can hopefully be sorted out. Overall global optimism is still high after the US reported that consumer confidence and housing data beat expectations. US stocks rose and Australian shares are following suit. The ASX 200 is up 31.6 to 5035.20. Japan is the only market in the Asia-Pacific region bucking the trend with the Nikkei 225 dropping 88.69 to 11,310.10 on the back of the stronger yen.

Aussie Dollar Flat In Today’s Forex And Binary Options Market

The Aussie dollar is trading flat today in Asia trade. As I said in yesterday’s report, the AUD/USD needs to hold the critical 1.02 level. The Aussie is at the weakest level in four months. Traders are selling their long positions in the Aussie dollar over concerns that Italian election uncertainty could slow the global recovery and delay European austerity measures.

The Aussie is trading at 93.932 yen, 1.23931 kiwis, and 1.02211 US dollars.

Euro Currency At A Critical Point In Forex And Binary Options Market

The euro is trading just above the 1.30 level in the forex and binary options market. This is a critical level that the euro needs to hold to keep the bull trend alive. This will be the first monthly loss for the euro since July.

All eyes are on Italy and their election drama. Moody’s said yesterday that the election uncertainty is credit negative for the country and that borrowing costs will continue to rise until leadership is in place. The worst outcome for the markets is new elections as that will prolong the uncertainty. For the euro to climb higher, a swift conclusion needs to take place in Italy to end the uncertainty.

Some Analysts See The Yen Strengthening In Forex And Binary Market

The yen has strengthened against the dollar and the euro this week over the Italian elections. Traders are paring back their yen shorts. Mizuho Corporate Bank sees the dollar falling back towards 88 yen after failing to break through 95 yen. I see the buy point at 88 to 91 yen. A pullback to that area is a good place for those that missed the move an opportunity to buy the dollar.

Gold Rebounds In The Binary Options Market

Gold has rebounded in the binary options market after Federal Reserve Chairman Ben Bernanke defended the central banks asset purchases. The Fed’s asset purchases have boosted the price of gold. Investors see the asset purchases as inflationary and increases the appeal for a hard currency like gold.

Gold is trading at $1611.60, silver $29.23, platinum $1620.70, palladium $743 and copper $3.569. In the energy markets, WTI is trading at $92.64 and Brent at $112.78.

Economic Data Calendar

  • 0700 German Import Price Index (MoM) 0.3% forecast -0.5% prev (EUR)
  • 0700 GfK German Consumer Climate 5.9 forecast 5.8 prev (EUR)
  • 0745 French Consumer Confidence 86 forecast 86 prev (EUR)
  • 0800 Swiss KOF Leading Indicators 1.00 forecast 1.05 prev (EUR)
  • 0930 British Business Investment (QoQ) 2.2% forecast 3.8% prev (GBP)
  • 0930 British GDP (QoQ) -0.3% forecast -0.3% prev (GBP)
  • 0930 British GDP (YoY) 0.0% forecast 0.0% prev (GBP)
  • 1000 Euro Consumer Confidence -24.0 forecast -23.9 prev (EUR)
  • 1000 Euro Business and Consumer Survey 89.8 forecast 89.2 prev (EUR)
  • 1010 Italian 10-Year Note Auction 4.17% prev (EUR)
  • 1010 Italian 5-Year Note Auction 2.94% prev (EUR)
  • 1330 US Core Durable Goods Orders (MoM) 0.2% forecast 1.0% prev (USD)
  • 1330 US Durable Goods Orders (MoM) -4.4% forecast 4.3% prev (USD)
  • 1500 US Pending Home Sales (MoM) 1.5% forecast -4.3% prev (USD)
  • 1500 Fed Chairman Ben Bernanke Speaks
  • 1530 US Crude Oil Inventories 2.413M forecast 4.143M prev (Crude Oil)
  • 1530 US Gasoline Inventories -0.900M forecast -2.884M prev (Crude Oil)
  • 1730 ECB President Mario Draghi Speaks
  • 1800 US 7-Year Note Auction 1.416% prev (USD)
  • 2130 FOMC Member Fisher Speaks
  • 2145 New Zealand Building Consents (MoM) -2.0% forecast 9.4% prev (NZD)
  • 2315 Japan Manufacturing PMI 47.7 prev (JPY)
  • 2350 Japan Industrial Production (MoM) 1.5% forecast 2.4% prev (JPY)

There’s a lot of key data on tap today for forex and binary options traders. First up is the data out of Great Britain. Is the economy growing or not? GDP data there is critical. After that we have the Italian debt auctions. How much did borrowing costs rise for Italy after the elections? Lastly we have central bank talk. Bernanke, Draghi and Fisher all speak today. What they say or don’t say can move the markets dramatically. Pay attention!

As always good luck to all forex and binary options traders. Be sure to check back for the latest updates!