Collinson FX Market Commentary - Nov 13 - Aussie cards fall OK

by Collinson FX on 13 Nov 2015 Collinson FX Market Commentary - Nov 13 - Aussie cards fall OK Click here to find out how to get Collinson FX's free iPhone app

Nov 13 - Commentary from Fed member, Bullard, confirmed targets of Employment and Inflation have been met. This encouraged further speculation of a December interest rate rise and forced equities lower. The Dollar was steady, with the EUR trading 1.0750, while the GBP inched above 1.5200.

Some surprisingly good news from Australia boosted the currency. Unemployment plunged, from 6.2% to 5.9%, with the addition of an enormous 58.600 jobs. The AUD shot back to 0.7100 aided by further improvements in Consumer Confidence.

Everything is falling into place since the leadership change by the Government, although much of the groundwork was in place. The KIWI managed to add further consolidation, holding above 0.6500, but the cross with the AUD has suffered. Central Bank commentary and activity remain the main game in town!

Collinson FX Market Commentary - Nov 12 - China Retail Sales flailing
Nov 12 - China Retail Sales were flailing, while Industrial Production dipped, reflecting a slowdown in the Worlds factory. Input prices have become more attractive, but this has failed to stimulate the economy, demand wanes!

The reflection is in the commodity prices, which remain soft, driving the associated currencies. The AUD rallied to around 0.7040, while the NZD looks at 0.6540.

A slow economic data week has left a flux in equity markets awaiting Central Bank interference. All eyes now focus on speculation of interest rate activity of the Central Banks.

Collinson FX Market Commentary - Nov 11 - AUD and NZD consolidate
Nov 11 - Moody's warned the world economy's ability to fight further shocks would be impaired by the extremely loose monetary policy and high debt levels. This is stating the obvious, but is necessary, as Central Banks and Governments do not seem to appreciate the dangerous route they have been travelling down.

Chinese CPI was lower, 1.3% from 1.5%, reflecting the lack of growth pressure in challenging conditions. This did little to inspire markets with equities drifting across Europe and the USA. Currencies were steady, with the EUR falling below 1.0700, while the GBP traded around 1.5100.

Commodity currencies were stable, with the AUD and NZD consolidating above 0.7000 and 0.6500, respectively. Chinese Retail Sales and Industrial Production may impact global markets today but Central Bank commentary and activity remain the major driver.

Collinson FX Market Commentary - Nov 10 - Chinese imports plunge
Nov 10 - The OECD released a down beat economic report overnight. Emerging markets have been hit hard by commodity prices, impacting global trade, leading to less optimistic projections. The U.S. has been sustained by consumer demand and expectations are for growth around 2.5%. The EU is being supported by the ECB Monetary Policy and extended fiscal deficits, which can only be considered emergency measures, does not bode well.

China is expected to grow, but at a declining rate over time, but the Asian slowdown has impacted powerhouses China and Japan. Chinese Trade data confirmed this, with exports falling 6.9%, while imports plunged 18.8%! This did not inspire markets, with global equities plunging sharply. Non-Farm Payrolls beat expectations and this enhanced chances of a Fed interest rate rise, adding to negative sentiment spreading across equity markets.

The EUR traded 1.0750, while the GBP held 1.5100, hit hard by the resurgent Dollar. Commodity currencies consolidated, with the AUD bouncing from 0.7000, while the KIWI fought to hold 0.6500.

Chinese inflation, Retail Sales and Industrial Production will influence markets over the next couple of trading days. All is not well despite the Feds rose coloured glasses.

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.