Forex Trading Log

Looks like the Australian dollar is stuck in range trading mode for the moment. The support for the Aussie dollar is largely believed to be from the possible further rate rises. The RBA Governor Glenn Stevens warned last week that it was “too soon to declare victory” over inflation, adding that cutting of interest rates hasn’t been recently considered. Remember that the Australian official interest rates were raised three times in 2006. So as long as the economic data remains neutral, the dollar seems to be stuck in range trading mode until any piece of data says differently. Energy and metal prices can influence the Australian dollar so watch out for dollar support and pullbacks based on those prices. Also note the news surrounding the Australian sharemarket.Coles group is considering takeover bids and there is that takeover of Qantas - and international private equity bids means money inflows into Australia - a positive for the Australian dollar.