After a relatively quiet session on Monday the FTSE, CAC and DAX have picked up the bullish baton and rallied strongly this morning. If it continues into the close it will extend the winning run on the FTSE to a record equalling 11 sessions.

Asian markets set the tone overnight with the Nikkei closing up more than 1.5%. With no top tier European economic data due this morning, markets are likely to hold these gains until US traders come on line around Midday. At 14.00 BST we have US new home sales which is today’s only economic announcement with an expected maximum impact.

Traders favour AUD

As we have often seen accompanying the recent stock market rally, traders are shunning the Dollar and Yen in early trading. Traders are in stead favouring other assets such as the Euro, Pound and in particular the Australian Dollar which is up 0.55% against the US Dollar in early trading this morning.

The Australian Dollar is benefiting from higher commodity prices and the country’s attractive interest rates of 3% is comparing favourably with 0.1% in Japan and near zero in the US.

The AUD is now within reach of 0.8264 which is the highest level recorded so far in 2009. One way of playing this might be a Fixed Odds One Touch trade which means you win if the level is touched at any time within the time frame you specify.

Also see FX Spread Betting.

This website content does not constitute investment advice. No individual contributor, contributing company nor Online-Spread-Betting.com accept any responsibility for any use that may be made of the content.