It’s interesting the way FX markets are reacting to data and other events, a sign that the rules of old are fading. The resilience of the Aussie is the strongest case in point. The AUD has become increasingly detached from the fortunes of commodity prices and the ebb and flow of the global economic crisis. The same can be seen in the likes of the Canadian dollar and also the Kiwi, although slightly less prominently. As for the single currency, it is having increasing difficulty detaching itself from the bigger risks in the eurozone, as the multi-year lows on many of the euro crosses testify. Guest post by Forex Broker FxPro The most worrying development over the past 24 hours remains the rise in short-dated yields in Spain, a problem that, for other countries, has proven to be a sign that self-sufficiency in funding has come to an end. Commentary Australia’s scope for further rate cuts. The fall in quarterly inflation numbers seen overnight leaves the door open for further rate cuts from the RBA, with the CPI annual rate falling from 1.6% to 1.2% in the second quarter. The Aussie was notably resilient to the numbers, quickly retracing the initial dip lower. But, as we’ve been talking about for some time, the Aussie is showing increased resilience in general as the focus of FX markets shifts more towards the fiscal balance sheet of nations. This has meant that the Australian dollar has increasingly detached itself from commodity prices and the fortunes of the Chinese economy. This is likely to be a recurring theme in the second half of the year. More of the same for currency markets. In relatively quiet trading conditions yesterday, such was the palpable pessimism towards the single currency that it still managed to underperform most other major currencies. Against the dollar, the euro slipped to 1.2043, a new 2yr low. In June 2010, the single currency recorded a 4yr low of 1.1877 and given the current mood it would not be surprising to see that level tested before too long. The euro has recorded a new 12yr low against the yen, with EUR/GBP back under 0.78. Meanwhile, European bond yields climbed sharply on Tuesday. With Europe’s politicians suffering from crisis fatigue and unable to bridge their differences while Greece, Spain and Italy burn, and with global central bankers likewise bereft of genuine policy responses to the unstoppable forces of balance sheet deleveraging, the euro will probably continue to slide. The tipping point in Spain. The price action yesterday in Spain reflected the fact that the country is beyond the point of no return, with the curve flattening aggressively. 5yr bonds are now offering the same return as 10yr bonds. The issue is that the Spanish regions are in a funding crisis and are now making requests (or considering doing so) to the government’s central fund set up earlier in the year. No debt crisis has ever been solved by piling more debt onto an already indebted entity. Furthermore, the plan’s announced last month to start down the road towards a pan-eurozone banking regulator, and to give the ESM the ability to capitalise banks directly, is taking time to put in place, time being the one thing the eurozone is becoming increasingly short of. FxPro - Forex Broker FxPro - Forex Broker Forex Broker FxPro is an international Forex Broker. FxPro is an award-winning online broker, offering CFDs on forex, futures, indices, shares, spot metals and energies, serving clients in more than 150 countries worldwide. FxPro offers execution with no-dealing-desk intervention and maintains a client-centric business model that puts customer needs at the forefront of our operations. Our acquisition of leading spot FX aggregator, Quotix, enables us to offer access to a deep pool of liquidity, as well as top-class order-matching and some of the most competitive spreads in the market. FxPro is one of only few brokers offering Negative Balance Protection, ensuring that clients cannot lose more than their overall investment. FxPro UK Limited is authorised and regulated by the Financial Conduct Authority (registration number: 509956). FxPro Financial Services Limited is authorised and regulated by the Cyprus Securities and Exchange Commission (licence number: 078/07) and by the South Africa Financial Services Board (authorisation number 45052). Risk Warning: Trading CFDs involves significant risk of loss. View All Post By FxPro - Forex Broker Other Forex Stuff share Read Next MahiFX Adds Gold and Silver to its Platform Yohay Elam 11 years It's interesting the way FX markets are reacting to data and other events, a sign that the rules of old are fading. The resilience of the Aussie is the strongest case in point. The AUD has become increasingly detached from the fortunes of commodity prices and the ebb and flow of the global economic crisis. The same can be seen in the likes of the Canadian dollar and also the Kiwi, although slightly less prominently. As for the single currency, it is having increasing difficulty detaching itself from the bigger risks in the eurozone, as the multi-year lows on… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.