Forex News Traders

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19:42 AUD/USD: Rumors of Hedge Funds in Trouble San Francisco, March 19. There are rumors this afternoon of up to three hedge funds in trouble which some are loosely linking to the commodity bail out as the funds clear positions to offset losses. One of the rumors is that the funds got the Fed rate cut call wrong yesterday, having anticipated a 100 bp rate cut. Nevertheless, the commodity fall is seen fuelling further capitulation trades into the weekend and in Asia tonight and next week and this is seen keeping pressure on AUD/USD. Reports of UK fund losses on JGBs have already circulated this afternoon regarding Endeavor Capital.
Gold is still probing lows around $940 and USD/CAD has just rallied to fresh highs of 1.0158, helping to weigh on AUD/USD which trades at 0.9130. The market is now watching Monday"s low around 0.9129 which if breached, targets 0.9000.