Archived IMT (2009.12.01)

The RBA raised rates by 25 bps to 3.75% and shows no signs of stopping next year. The fact that the RBA still deems its tightening process a stimulus-reducing operation, suggests that as much as 125-bps of tightening could be added next year, Although the BoJ announced fresh liquidity measures to weaken its currency, it has not reversed its decision to stop buying corporate debt. As US equity futures rally, both USD and JPY are dragged lower, with AUDJPY facing initial resistance at 80.40, followed by 80.90. Oil will attempt 78.70-80, but the main challenge is a weekly close above 80.30. USDCAD eyes 1.0415. US Nov ISM expected at 55 from 55.7. Oct Pending Home sales exp -0,8% from +6.1%. Disappointing figures could prove more positive for USD than JPY following BoJ decision. GBPUSD trend line resistance stands at 1.6640.