Collinson FX Market Commentary - Oct 29 - AUD crashes

by Collinson FX on 29 Oct 2015 Collinson FX Market Commentary - Oct 29 - AUD crashes Click here to find out how to get Collinson FX's free iPhone app

Oct 29 - The Fed left rates unchanged, as expected, but intimated that they will likely raise rates in December. The intention surprised many and Bond yields immediately spiked with currencies. The EUR plunged to 1.0925, while the GBP dropped to 1.5260, as the reserve spiked.

The Fed sited a stronger labour market and improving economic conditions allowing the first interest rate rise since the GFC!? Commodity currencies were slipping lower and momentum was enhanced by the Feds language.

The AUD crashed below 0.7100, while the KIWI was trading 0.6640, with the RBNZ interest rate decision due later. This would reduce any pressure the RBNZ may have felt to further cut rates. The telegraphed rate rise will more than likely hit another major obstacle as the Fed look for an excuse to retreat from the brink.

Collinson FX Market Commentary - Oct 28 - Global economic slowdown
Oct 28 - Global equities slipped lower overnight due to mounting evidence of economic slowdown. U.S. Durable Goods Orders contracted by 1.2%, while conflicting news on the housing market, does little to settle. New Home Sales fell 11.5%, although Home Prices moved up 5.1%, sending mixed messages.

The Dallas Fed Manufacturing Activity also contracted 12.7%, confirming recent poor data, which may influence the Fed. The Fed is meeting today and set to announce their decision tonight but there is little danger of an interest rate rise.

The EUR held 1.1000, while the GBP traded 1.5350, after local GDP slipped to 2.3%. Commodities drifted but held ground in the face of a faltering reserve. The AUD dipped below 0.7200, while the NZD struggles at 0.6760, with local trade data deteriorating as exports drift and imports rise.

:

Collinson FX Market Commentary - Oct 27 - The Ferryman must be paid
Oct 27 - Equities assumed their natural bias and slipped lower after a quiet open to the week on the economic front. Recent support for a European QE2 looks likely to pin the single currency lower, despite a concerted effort to undermine the Dollar, while China looks to join the currency wars.

The Bank of China has added further to expansionary monetary policy in an effort to remain competitive. Commodities and equities are lower, pushing the currencies in directions that may surprise, with a conundrum brewing. The EUR held 1.1000, while the GBP traded 1.5350, reflecting loose monetary policy.

The commodity currencies reversed recent losses, with the AUD moving towards 0.7250, while the NZD is heading back towards 0.6800! The bounce conflicts the move in commodities but reflects the losses sustained in global currency wars. We could now look to an interest rate cut on Cup Day from the RBA!?

For more on Collinson FX and market information see:
www.collinsonfx.com and www.collinsonwealthmanagement.com

Countries: | NZ: 0800 338 838 | AU: 1800 143 415 | NY: 1888 6257 833 | UK: 0800 0285 834 |

Disclaimer: The details expressed in this website and accompanying documents or transmissions are for information purposes only and are not intended as a solicitation for funds or a recommendation to trade. Collinson Forex Ltd accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the information contained or related to this site.