In other market news.

• US Industrial Production expanded 1.3% in the month of November from the same period last year. Another little sign the US economy is continuing to gain strength.
• The RBA Minutes from its December meeting are due out today at 11.30am AEDT so expect some increased volatility on the AUD at that time. Traders will be eager to see what the RBA committee discussed and whether or not there was any discussion or hints about a cut in the official cash interest rate in 2015. If this was the case the AUD will quickly slide lower.
• In case you are wondering if the tragic events that unfolded in Sydney yesterday and overnight impacted financial markets the answer is yes. The AUD yesterday morning around 10am local time dropped around 25 ticks and continued to make a new low in price throughout the day. The AUDUSD traded as low as 0.82005.

LTG GoldRock Director Andrew Barnett provides FX Market Analysis in the Daily GoldRock Insider Report. Register for the next LTG Goldrock Live Trading Room Session from www.ltggoldrock.com

China and the Greeks spark market sell off.

It wasn’t just one thing it was a number of things that sparked the sell off on stocks and drove the Yen off its lows. Tuesday was a great example of traders buying the Yen in times of stock market uncertainty.




Chinese stocks went down 5% which is the equivalent of the Dow Jones being down 900 points (a big down day on the Dow Jones is about 150) and Greek stock markets dropped over 12.7% which is the biggest single decline in 27 years.

The Greek government has called an election a couple of years early and overall Europe has a big struggle on its hands and countries such as Greece, Spain and Italy will cause more grief over coming months and years for the European Central Bank.

The full LTG GoldRock Review of this Forex News can be found in the GoldRock Insider Report for Wednesday 10th December 2014
 

Aussie and Kiwi Dollars fall on China data.

Both currencies were weak leading into Monday however China’s weaker than expected Trade Balance data sent both currencies sharply lower on Monday. China’s Trade Balance data showed imports dropped 6.7%, which compared with forecasts of 3.8%. Exports only rose 4.7% compared to the expected 8%.

China recently lowered its official cash rate and with commodity prices at extremely low levels, China’s Trade Balance data weakening.

LTG GoldRock Inner Circle Members received the full review in this morning's GoldRock Insider Report.

The Trading week ahead.

Compared to last week, this week’s economic data looks like a casual walk in the park for the first 3 days. Virtually no high impacting economic news that has the potential to be a game changer for any currency. In fact we have to wait until Thursday before we get the first official High Impacting News number, which happens to be the RBNZ interest rate decision and policy statement.

Thursday is the busiest economic data day of the week with the RBNZ policy statement, Chinese New Loans data, Australian unemployment data, Swiss National Bank policy statement, ECB monthly economic report and US Retail Sales. Friday is pretty lacklustre with the University of Michigan US Confidence report finishing off the week.

You can find the full outlook on what will drive markets for the week in Today's GoldRock Insider Report. For more info on joining the LTG GoldRock Trading Team go to www.ltggoldrock.com 

Bank of Japan Governor says the Yen’s dropped too quickly.

The monthly BOJ minutes yesterday revealed the vote to increase the stimulus program was extremely tight but the conviction to maintain a monetary policy easing bias was as strong as ever and Governor Kuroda expects the Japanese economy to reach its inflation target of 2% as early as the second quarter of 2015.

The BOJ Governor did mention in a speech yesterday that he had concerns that the Yen had weakened too quickly and this is why we saw the Yen rise a few ticks through the Asian trading session. Once European trading started and stock markets rallied the Yen was again sold. 

The full report is featured in Today's LTG GoldRock Insider Report. Go to www.ltggoldrock.com for more information.