: Aussie, Kiwi rally almost 1% versus the U.S. Dollar in exchange for light

May 28, 2012 13: 29 GMT  basic titles
-The Greek Pro-Bailout Parties win in the Euro falls concern – Bloomberg
-Spanish-German yield spread widens to the Record of the Euro on the funds of the Bank - Bloomberg
-Iran not ready for visits to suspect nuclear Site - Reuters
-Gold, ready to resume the status of refuge - WSJ
-Kenny calls the Ireland to the Treaty of the European Union - back WSJ
Summary of European Session
Trading in the Asian and European sessions were marked by particularly light volume, which is not surprising given the large holiday in Europe and North America. And, in view of the recent correlation between the volume and the & S P 500 (-0.956 rolling 5-day Thursday), it is even more surprising that the demand for risky assets is place in the light of the conditions of trading. Commodity currencies have been taking advantage of this environment, with the Australia and the New Zealand $ leading the majors substantially to start the last week of May.
In part, the evolution over the weekend of the Greece provided the basic thrust to trigger a movement to currencies of performance more high and correlated with the risk of the assets. Five separate surveys published this weekend showed that new democracy pro-bailout Group held a small lead of about 0.5 to 5.7 points on the anti-bailout of the Syriza party. To this end, ND would garner between 25.6% and 27.7% of the vote, while the Syriza would take home between 20.1% and 26.0% of the vote in the June elections. Offering more fuel to facilitate case, the results of two major surveys, MARC and pulse, showed that ND and PASOK, the other party pro-major bailout, together would win a parliamentary majority in June.
Investors took the results of surveys and run with them, with the AUDUSD and NZDUSD rallying 0.97% and 0.94%, respectively, to start the week. The Euro has step responded to the press, however, giving this rally in question, as it appears investors are beginning to move their main concerns to the growing indebtedness of the Italy and the Spain.
Take a look at credit, short-term performance begin to increase rapidly once more, with 2 Spanish and Italian years giving 3.807% 4.288% notes each, respectively. For the latter, it is therefore the best return in 2012. Financing constraint is evident on the longer end of the yield curve, with yields of 10 years Italian and Spanish mounted points base-3, 8 and 12. 1 - bps, respectively, of 5.679% and 6.391% each. Therefore, I believe that the evolution of the situation of the Greece is positive, they will ease not fear of the decrease in deposits in European banks. These increase yields in the major economies of Europe (Italy and Spain) will be collecting more attention before Greek elections in June.
Graphic NZDUSD of 5 min: 28 may 2012

Graphing with Marketscope - prepared by Christopher Vecchio
The New Zealand Dollar is the top performer today, with 0.97% NZDUSD buy. The US Dollar was the worst performer in all, with it reduce the lease against the Swiss Franc, to which she lost 0.10%. The Japanese Yen was slightly higher, with the damping USDJPY of 0.34%, and the EURUSD was barely higher, up to 0.18% Monday at the time of writing.
24-Hour price Action

Main levels: 12: 30 GMT


So far, on Monday, the Dow Jones FXCM Dollar Index (Ticker: USDOLLAR) is slightly less, trade 10174.78 at the time when this report was written, after opening at 10182.24. The index traded mostly lower, with the high in the 10183.25 and the 10148.44 low.

FOREX NEWS - Dollar rises to 9-month high versus yen; euro capped

* Yen slides to 9-month low vs dollar of 81.718

* Japanese deflation to keep BOJ focus on easing measures

* Euro slips versus dollar post-LTRO

By Neal Armstrong

LONDON, March 2 (Reuters) - The yen fell to nine-month lows versus the dollar on Friday, retreating after data showed persistent negative price pressures in Japan which are likely to keep the Bank of Japan's focus on monetary easing and undermine the currency.

The yen has taken a hit after the BOJ's surprise monetary easing in February, while the dollar found some reprieve this week after U.S. Federal Reserve Chairman Ben Bernanke stopped short of signalling more stimulus.

The dollar rose around 0.7 percent to 81.718 yen on trading platform EBS after taking out Tuesday's high of 81.661 in early European trade. Technical analysts said next resistance was the 100-week moving average around 82.19, an indicator which dollar/yen has traded below since October 2007.

The dollar rose 0.4 percent versus a currency basket to 79.102 and also climbed against the euro.

Japan's core consumer prices fell year-on-year for the fourth consecutive month in January, suggesting mild deflation - the bane of the economy for over a decade - could persist this year as lacklustre wage growth curtails domestic demand.

"The Japanese data is persistently deflationary and the Bank of Japan is ready to do all they can to turn inflation positive," said John Hardy, currency strategist at Saxo Bank.

"But I do think dollar/yen is getting a little over-extended at these levels," he added.

Traders said an option barrier at 81.75 yen was attracting protective sell orders which may prevent further dollar gains in the near term, while analysts also said the dollar's upside could be limited.

"Putting all the pieces together, we could see USD/JPY peak around 82-83, but our bias from here would be to see USD/JPY lower, towards 75 over the next six months," said Bilal Hafeez, head of forex strategy at Deutsche Bank.

"One important support for the recent USD/JPY rally was likely long JPY positions being unwound. However, our latest measure of positioning suggests that investors have flipped to extreme short JPY positions. Almost all the previous instances of this happening have seen the yen rally over the subsequent month," he added.

The Australian dollar pushed higher against the yen, although the euro was held in check against the Japanese currency. The Australian dollar hit its highest level since May 2011 of around 88.00 yen at one point.

The low-yielding yen tends to come under pressure when market optimism about the outlook for global economic growth improves. That can trigger more risk-taking among investors and increase the popularity of carry trades, in which investors sell low-yielding currencies against higher-yielding currencies.

News that Japanese brewer Asahi is emerging as a front-runner to buy eastern European brewer StarBev, helped lend support to the euro versus the yen, traders said.

EURO/DOLLAR SLIPS

Against the dollar, the euro slipped 0.3 percent on the day to $1.3256, its lowest in around a week, after traders said large stop-loss sell orders were triggered through $1.3270.

Analysts said the European Central Bank's massive cash injection this week (LTRO) has made it more attractive to use the euro as a funding currency to buy higher yielding assets.

Market players believe the cash bonanza from the ECB will ease bank funding strains and support the euro zone's sovereign bond market. That, in turn, could help spur more risk-taking among investors.

But investors are also reluctant to buy the euro while worries over debt and growth cast a cloud over the region.

Greece has taken action needed to secure a second bailout according to Eurogroup President Jean-Claude Juncker, but the money can only be paid out on completion of a bond swap between Athens and private investors to be concluded on March 9.