The US Dollar Index continues to get hammered lower to new lows at the price levels of 75.70 bp. and any hopes of any form of a rally has grown deem. With market participants growing increasingly convinced that the once mighty USD has now officially lost its status as being the World's Reserve currency so to speak. As a lot of investors as well have started to doubt this status quo.

There have been articles out from many major newspapers worldwide for sometime discussing the depreciating US dollar value compared to some emerging markets foreign currency and this has not help to bolster any confidence for the consumers specially in the United States. Where they find that they loose the US dollar value specially when traveling in other foreign countries. 

Moreover, there has been little to no effort on behalf of US officials to defend the US dollar currency or even any Central bank intervention by the Federal Reserve Bank or even through some backdoor institutions which they have done before. This in conjunction with a market holding a healthy risk appetite and looking for more attractive yield, continues to weigh on the prospects for the USD.

Overnight data from China reinforces, after the economy produces some robust trade figures, which helped to boost the higher yielding currencies to fresh 2009 highs. The US Dollar Index has also managed to head south of the border to a fresh 14-month low.

Although, the Australian consumer sentiment impressed to the upside, with Aussie rallying to highs by 0.9150 despite of the Business confidence and business conditions in Australia both declined in September, according to survey results from National Australia Bank.NAB reported Tuesday that its business confidence index declined 4.0 points to plus-14 in August while business conditions declined 1.0 point to plus-3.0.

The AUD USD, on the other hand, posted a strong gain on last Monday.  Demand for higher yields helped drive up the Aussie although gains were probably limited by today’s low volume and lower open interest where measured relative to their market movements.  Some traders are buying the Aussie again in anticipation of another possible interest rate hike by the Reserve Bank of Australia at its next meeting on November 3.

Meanwhile, Asian markets have drifted higher in most cases, after a flat session in Wall Street and amid expectations of upbeat quarterly earnings figures. Euro and Pound have continued appreciating. Tokyo Nikkei Index rose 0.6%, while the HK Hang Seng Index advanced 0.8% and Souh Korean Kospi Index remained practically flat on the nose.

The EUR/USD rally from 1.4675 low on last Monday October 12, 2009 and has extended on this Wednesday's Asian session to levels right below 1.4900. The Euro bounced at 1.4835 session low to reach levels between 1.4870 and 1.4890 at the time of this writing.

While the GBP/USD decline from 1.6120 high on Oct 8 found support on Tuesday at 1.5705, 4-month low, and the Pound bounced strongly to rally during the last 24 hours to reach 1.5980 Asian session high, right below psychological 1.6000 level. Of course, this would happen on a day to day basis as traders and speculators alike liquidate positions before and after trading sessions.

And the USD/JPY decline from 90.45 high on October 12 has extended during Asian session to levels below 89.00, hitting an intra-week low at 88.80. At the moment of writing, the Dollar trades at 88.95; 0.80% below its day-opening level

This would serve as an update on the current market conditions of the Foreign Exchange market as investors are always in search of the latest and most reliable source of information. This also is our contribution to traders who may have to scroll over a lot of information and data from other broker-dealers which will always find a way to have some conflicting information.