Archived IMT (2010.12.07)

TAX CUTS BOOST RISK TRADE as all major currencies rally against USD and JPY. Pres Obamas announcement to extend Bush-era tax cuts for the wealthy and middle class for 2 years. The program includes 2% payroll tax cut and a 13-month extension of jobless benefits. Despite opposition from some democrats policymakers, the tax cuts will likely pass by the end of current legislative session. AUDUSD BREAKS OUT of the right shoulder shown in yesterdays chart http://chart.ly/uk5r9j7 as it rises above 0.9930 to 0.9964 amid surging risk appetite. AUDUSD targets 1.0010. IRISH BUDGET due at about 15:45 GMT. EURUSD attempts to regain $1.34230s. Those playing the risk aversion play must be cautious as Dow futures are now up 87 pts. Gold hits new high at 1427, Silver at 30.44, shrugging talk of a Chinese rate hike over this weekend.