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Two Ways To Play: Australia Raises Interest Rates Again

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Strengthen your portfolio in good times and bad.

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The Fear has Passed in Australia

The Reserve Bank of Australia raised interest rates for the third consecutive month last night in an effort to combat rising inflationary pressures.

The Financial Times reports the central bank increased rates 25 basis points to 3.75%. In a statement, RBA Governor Glenn Stevens said, "Growth in 2010 is likely to be close to trend and inflation close to target. With the risk of serious economic contraction in Australia having passed, the board has moved at recent meetings to lessen gradually the degree of monetary stimulus that was put in place when the outlook appeared to be much weaker."

For more on the market, see Minyan Jeff Saut's Don't Worry About the Dollar!

From the Bull Pen: Bulls continue to look abroad. Global drink-maker Diageo (DEO) sitting near $67 support on the daily chart may be an opportunity. Those bullish can set a sell stop below that level.

From the Bear Cave: Bears can look to a domestic retail play like American Eagle (AEO). A failed rally near $17 to $17.50 could be makings of a right shoulder in a bearish head-and-shoulders pattern. Consider entry, if and when.

A Quick Check around the World

Asian trading closed with the Nikkei 2.43%, India 1.61%, Hang Seng 1.34%, Shanghai 1.25%, and Taiwan 0.88%.

Across the pond, we see the FTSE 1.62%, CAC 2.06%, DAX 1.98%

As of 8:20 AM EST, S&P Futures are trading +8.50 to 1103.25. Nasdaq futures are +13.25 to 1780.75.

A Look at Commodities

Over in commodities, crude oil is +0.66 to 77.94 while gold is +9.300 to 1191.60 this morning. Silver is +20.5 to 1870.0 and copper +2.350 to 317.20.

The dollar Index is -0.3350 to 74.6000.

On the Radar

Economics

10:00 Construction Spending -0.4 cons.
10:00 ISM Index 54.8 cons.
10:00 Pending Home Sales -0.3 cons.

Click here for the full trading radar.

Good luck today!
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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