He expressed the view that raising interest rates in the present time to attempt to reduce the bubble properties is not effective and can destroy process of fragile recovery of the economy.
Mr. Kohn said the economy may grow more slowly in the future, while inflation may be below the target 2%.
Clearly, the dollar is still difficult for its competitive positions, low interest rates in record along with too much money pumped into the economy have made the dollar fall significantly.
Some experts think that we can continue to find support this week from report of ADP employment change will be better. The U.S. economy is primarily interested in job today, the labor market has improved, the U.S. dollar’s interest rates will be pushed up.
Gold fell 1106.50 to 1094 in New York trading session last week after the U.S. Department of Commerce announced the jobless dipping off (actually 432K, 455K in forecast, previous 452K).
Gold ended the year in 1098 thanks to support from oil prices. Oil price has increased up to 80 USD a barrel during few days when U.S. economic indicators published well. In the days, gold ranged in the 1082-1107, Asian markets often bought gold to push up prices but US investors sold out due to the U.S. economic indicators.
PMI of China will be announced this morning at 9:30 will impact on gold markets. This morning, gold may range: 1092.50-1099.50.
The aussie was affected by AIG Performance of MFG falling 48.5 against 51.2 as well as  the down trend of gold prices along with today's strong dollar will make the aussie hard to achieve high increase in the today’s morning.
Technical analysis shows: Initial support at 0.8902 (Dec 30 low) followed by the 0.8857 (Dec 25 low). Initial resistance is now at 0.9011 (Dec 17 high) followed by 0.9070 (Dec 16 high). The market is narrow in 0.8958/82.
Opening session in Asia this morning at 0.8982, the AUD tumbled to 0.8939. We predict the aussie fluctuates in 0.8940-0.8960. If passing through the 0.8940, the currency may reduce to 0.8930. Conversely, the AUD can win 0.8970.
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