Aussie Rises to New Monthly Maximums

The Australian dollar reached the new monthly maximum the Japanese yen as the stock markets signaled growth for a third day on improved earnings of the banks.

The currency experienced a minor decline during the day as the markets reacted on the RBA minutes stating the necessity of the further interest rate cuts. But then the growth followed. The Aussie also fell against the New Zealand dollar as the gain in commodities market made the NZD look more promising than than its Australian counterpart.

The analysts talk mainly about the good news from the U.S. banking sector as the primary reason for the global stock and high-yielding optimism. Some are afraid of the further rate cuts and say that the current optimism can’t last for too long and the Australian dollar has now some considerable space to fall. When the optimism is over, the crude oil will start to pare its gains and the Aussie will have to step back against other currencies.

AUD/USD is currently trading near its open level at 0.6583 as of 13:52 GMT after almost reaching new monthly high at 0.6615. AUD/JPY rose from 64.74 to 65.03 after peaking at 65.39 — the highest level since January 8. AUD/NZD fell for sixth day in a row — from 1.2442 to .12424. NZD/USD rose from 0.5288 to 0.5300, while NZD/JPY went up from 51.96 to 52.59 today.

Forex Software Packages

If you plan to start trading FOREX online you will of course be using a software system. This system will make it easy for you to get information quickly about market prices and make trades. There are two types of FOREX software available, client based and web based.
As the FOREX market is a fast moving market and you will need up to the minute information to make informed transactions, it is up to you to see you have a high speed internet connection. Dial up internet access will absolutely not work for this. Another consideration could be the location of the servers used by your broker. If your broker's servers are located quite a distance from you, say in another country, this could potentially slow down your transmissions. If you plan to trade online you will need a modern computer and high speed internet connection.
The next consideration would be which type of software, client based or web based? Web based software is housed on your brokers website. You will not have to install any software on your own computer. A web based software program will allow you to log in from any computer that has an internet connection. A client based software program, or one that you download into your own computer will limit you to transactions only on the computer it is downloaded on. Web based software programs are preferred by most brokers who think they are more safe and reliable. Web based software tends to be less vulnerable to attack from viruses and hackers during transmissions than client based software.
Any FOREX software should offer you real-time quotes and offer means to quickly enter and exit the market. These are minimal requirements of any trading software. Upgraded software packages are usually offered at an extra monthly fee by brokers.
Generally brokers will have client information housed on two severs kept in two different locations. This is to guarantee client data is kept as safe as possible. If there is a power failure or a problem with one server the data is sent back and forth from the second secure server and you will not notice an interruption. Regular back ups of these servers is another way that brokers keep financial data safe in case of server failure.

Yen Drops on Toxic Assets Disposal

The Japanese yen declined against the other major currencies today as the Forex traders speculated that the U.S. plan to buy out the toxic assets is going to hurt the «safe haven» currencies, spurring the risk-hungry carry trade.

During the early Asian trading session the U.S. dollar was also bearish against the euro and the pound as the investors dumped it in favor of the more riskier assets. As of now the dollar is rising against the euro as the confidence in the U.S. economy is rising after the American administration unveiled the long-awaited plan to remove the bad debt from the private financial system.

The yen, on the other hand, is very vulnerable to any news that eliminate the risk-aversion. The Japanese economy has already suffered more than U.S. from the ongoing crisis and the only advantage the yen can offer is a safety, which is quite vague and isn’t very sought by the traders when there is chance for the stable carry trade opportunity.

Aussie Rises to New Monthly Maximums

The Australian dollar reached the new monthly maximum the Japanese yen as the stock markets signaled growth for a third day on improved earnings of the banks.

The currency experienced a minor decline during the day as the markets reacted on the RBA minutes stating the necessity of the further interest rate cuts. But then the growth followed. The Aussie also fell against the New Zealand dollar as the gain in commodities market made the NZD look more promising than than its Australian counterpart.

The analysts talk mainly about the good news from the U.S. banking sector as the primary reason for the global stock and high-yielding optimism. Some are afraid of the further rate cuts and say that the current optimism can’t last for too long and the Australian dollar has now some considerable space to fall. When the optimism is over, the crude oil will start to pare its gains and the Aussie will have to step back against other currencies.

AUD/USD is currently trading near its open level at 0.6583 as of 13:52 GMT after almost reaching new monthly high at 0.6615. AUD/JPY rose from 64.74 to 65.03 after peaking at 65.39 — the highest level since January 8. AUD/NZD fell for sixth day in a row — from 1.2442 to .12424. NZD/USD rose from 0.5288 to 0.5300, while NZD/JPY went up from 51.96 to 52.59 today.

Rupee to Post Worst Weekly Drop This Year

The Indian rupee declined against the U.S. dollar today and is currently ready to show the biggest weekly drop since the beginning of the year as the slump of the U.S. stock markets was followed by the decline in the Asian markets.

The Bombay Stock Exchange benchmark index (SENSEX) is currently falling by more than 2.5 percent. Such a strong decline in the stocks prompt foreign investment funds to sell their Indian equities and to convert from the rupee the Indian dollar. The rupee is currently approaching its 11-week lowest level against the dollar.

The analysts see a little chance that the rupee will be growing again soon — even the country’s officials are saying that the recession will have a deeper influence on the Indian economy than it was expected earlier. The capital outflows are likely to continue to be the major disadvantage of the INR, which is likely to get many speculative positions traded against it.

USD/INR from 49.73 to 49.87 as of 9:13 GMT today — its highest level since early December. The weekly gain of this currency pair is 1.9 percent.

Managing a Margin Forex Account

Although the example given is much simpler than what's happening in real market situation.

But it cleary illustrates that trading in can easily magnify trade's ROI in a dramatic way. Although trading on margin sounds extremely easy to gain profits, but it is important that traders understand well the risks they are undertaking.

Traders should be very aware of the margin call and should always avoid them at all cost. Note that in the event that money in your account falls below predetermined threshold (Margin Call), the positions in the account could be partially or totally liquidated, even it's in a highly volatile, fast moving market. Also, traders should always monitor own margin balance on a regular basis and utilize stop-loss orders on every open position to limit downside risk.