Forex

This is MyShareTrading.com - Why in the world am I talking about Foreign Exchange? There is a good reason why I'm blogging about trading the foreign exchange currency markets mostly instead of the Australian Share Market. There is nothing special happening in that market at the moment - its going about its normal business.

The US Dollar didn't seem to move much during the public holiday but it did have a large trading range... At 7am (AEDT), the local unit was trading at US75.47¢, which is the same as last nights' close of US75.47¢. In overnight trade, it hit a low of US75.31¢ and a high of US75.78¢. So basically the AUD dollar has been in a trading range of 20 pips above and below...

Looks like the chart is travelling sideways for the moment... Remember it's Martin Luther King Jr. Day in the USA last night so that was a contributing factor.

Trading the forex markets can be daunting for beginners and novices. Be prepared for an interesting ride of profits and losses: I haven't been participating in the market for about 6 months. Other circumstances pulled me away from the markets that I love. So my skills are a bit scratchy - you can call me a forex novice for the time being. I tried playing the fluctations in the recent movements in AUD/USD in the forex markets and I made 8 percent of $500 so thats $40 in one day.

The Australian dollar opened three quarters of a US cent weaker on Friday as a drop in commodity prices pulled the local unit lower. At 7am (AEDT), the local unit was trading at US74.73¢, below Thursday's close of US75.48¢. Overnight, it hit a high of US75.40¢ and a low of US74.60¢.

The United States Federal Reserve has delivered on market expectations by raising its benchmark interest rate by another quarter percentage point to 4.25 per cent and signalling more to come.

However, a change in wording in the statement - the removal of the description of policy being 'accommodative' in favour of 'some further measured policy firming is likely" - was taken as a signal that the end of the cycle is nigh. Bond yields fell slightly in response, the US dollar lost some modest ground and equity markets rallied.

Australian dollar opened slightly weaker on Monday despite support from the recent commodity price surge - Market awaits speech: The Australian dollar opened slightly weaker on Monday despite support from the recent commodity price surge, while investors prepare for central bank governor Ian Macfarlane's address on Tuesday.

At 7am (AEDT), the local unit was trading at US74.83¢, below Friday's close of US75.13¢.

Over the weekend, it hit a high of US75.24¢ and a low of US74.93¢.