From Jack Crooks, Editor of World Currency Options:

What's Happening:

A little food for thought today: If you look at the Australian dollar and gold on a chart, this pair usually moves together. (That's because Australia is one of the world's leading gold exporters.)

But overnight, more good news from the Australian economy has boosted the Aussie dollar.

What We Say:

Will gold follow? Or is the Aussie dollar overdone? Take a look at the chart below and see for yourself.

Key News• Key Reports Due (WSJ):ICSC Chain Store Sales: +0.3%. Previous: +0.2%. 8:55a.m. Redbook Retail Sales Index. Previous: +0.7%. 10:00a.m Feb Pending Home Sales. Previous: -4.1%. 5:00p.m. ABC/Wash Post Consumer Conf. Previous: -2. N/A Auto Sales. Previous: 16.5M. Quotable “It...

Is a dollar rout in the making? The potential is there for a major decline in global capital flow to the U.S.: 1) Protectionism i.e. new tariffs against China – this will likely hurt the buck because it will force...

Key News• Confidence in the European economy unexpectedly rose to a six-year high and unemployment fell to a record, giving the European Central Bank scope to raise interest rates in the 13-nation euro region again. (Bloomberg)• A U.S. trade official...

Key News• Bernanke Indicates Rates to Stay Steady -- WSJ• Capital-goods orders, excluding defense and aircraft, fell in February, igniting fears that businesses are becoming more pessimistic about the economy. -- WSJ• Oil Trades Near Six-Month High as U.K. Raises...

Key News• Key Reports Due (WSJ):7:45a.m. ICSC Store Sales Index For Mar 24. Previous: +0.4%. 8:55a.m. Redbook Retail Sales Index For Mar 24 Wk. Previous: +0.5%. 10:00a.m. Mar Conference Board Consumer Confidence. Expected: 108.0. Previous: 112.5. 10:00a.m. Mar Richmond Fed...

Key News• The value of financial assets held by Japanese households at the end of December hit a record (WSJ).• Key Reports Due (WSJ):8:30a.m. Feb Chicago Fed Natl Activity Index. Previous: -0.74, 10:00a.m. Feb New Home Sales. Previous: -16.6%. 10:30a.m....

Key News• Japan's Trade Surplus Unexpectedly Widens 7.7% (Bloomberg)• Australian Dollar May Extend Rally as Options Traders Increasingly Bullish (Bloomberg) • Key Reports Due (WSJ):8:30a.m. Initial Jobless Claims. Expected: +2K. Previous: -12K. 10:00a.m. DJ-BTMU Business Barometer For Mar 10. Previous:...

• Key Reports (WSJ): 7:45a.m. MBA Refinancing Index. Previous: +3.5%. 2:15p.m. Two-day FOMC meeting continues, interest rate decision expected. Quotable All political thinking for years past has been vitiated in the same way. People can foresee the future only when...

Inflation was the key mover of currency prices today. Both the British pound and the Canadian dollar rallied sharply on news that consumer prices (CPI) for the month of February rose more than expected; CPI was up 2.8% in the...