{"id":4200,"date":"2009-10-07T06:58:05","date_gmt":"2009-10-07T11:58:05","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4200"},"modified":"2009-10-07T06:58:05","modified_gmt":"2009-10-07T11:58:05","slug":"etoro-daily-market-review-oct-7-2009","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/10\/07\/etoro-daily-market-review-oct-7-2009\/","title":{"rendered":"eToro Daily Market Review Oct 7, 2009"},"content":{"rendered":"
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The Rally Continues, Gold Comes Back Into Focus<\/strong><\/p>\n

Numerous events had an effect on yesterday\u2019s session, driving Wall Street and the major currency pairs higher. The Bank of Australia surprised the markets, increasing their central rate from 3% to 3.25%. Gold jumped above the $1000 mark and rumors that the Dollar might lose its status as a major currency in the oil trade, helped to push the indices higher.\u00a0 The S&P500 closed the session with a gain of 1.37%, while the Nasdaq finished higher by 1.77%.<\/p>\n

The trading day started on a positive note, as the RBA mentioned that they expect the Australian economy to return to a normal state during 2010. The bank took certain measures against future inflation, raising their central bank rate. \u00a0The RBA finished their speech by mentioning that with inflation now around stable levels and growth likely to be close to trend over the year ahead, they feel that it is now time to start to remove the stimulus provided by monetary policy from the markets.<\/p>\n

Even though all the Australian Dollar crosses felt an impact from the bank\u2019s decision the AUD\/USD showed the most movement, continuing higher within its recent trend. After bouncing off trend line support last week, the AUD\/USD climbed during yesterday\u2019s session reaching the middle of its current channel.<\/p>\n

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Gold Climbs to new Levels.<\/strong><\/p>\n

The buzz of the day was Gold, reaching an intraday high of $1042.32. Already during mid-day, European hours, this hot commodity broke its prior minor range and headed higher. Within a matter of a couple of hours, Gold broke all resistance levels and climbed higher. Gold finished the day around its highs and held at $1040 during the overnight session.<\/p>\n

From a technical point of view Gold has now breached its prior high formed in early 2008. When taking a glance at the weekly chart below one can see that even though this commodity is trading around high levels, indicators aren\u2019t yet pointing yet to an overbought situation. According to some analysts including J.P Morgan, Gold could see higher levels in months to come due to the current situation. With the Fed expected to keep interest rates at low levels, investors are now heading out of the U.S Dollar, rushing to counterparts, which include Gold.<\/p>\n

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Market Data to Watch Out For<\/strong><\/p>\n

Looking forward, today\u2019s session will be characterized by investors preparing for tomorrow\u2019s interest rate decision. Even though the markets are expecting a \u2018no change\u2019 statement from both the banks, recent actions by the RBA have shocked traders, showing them that anything can happen.<\/p>\n

GDP is scheduled to be released shortly in Europe and is expected to show a -0.1% figure. In addition, Australia will continue to shake the market, releasing their employment figures later on during the trading day.<\/p>\n

Market Analysis provided by eToro<\/span><\/a><\/strong><\/p>\n

Disclaimer: Trading in the Foreign Exchange market might carry potential rewards, but also potential risks. You must be aware of the risks and are willing to accept them in order to trade in the foreign exchange market. Don\u2019t trade with money you can\u2019t afford to lose.<\/p>\n

\u00a9 2009 eToro Blog.<\/a><\/span><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

By eToro – Numerous events had an effect on yesterday\u2019s session, driving Wall Street and the major currency pairs higher…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-4200","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4200","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=4200"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4200\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=4200"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=4200"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=4200"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}