Collinson FX Market Commentary - Apr 5 - +ve auction fails to inspire
by Collinson FX on 4 Apr 2017
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FX MarketCollinson Commentary - Apr 5 - +ve auction fails to inspire
Markets were steady overnight, with equities posting small gains, along with commodities. The importance of the China-US meeting this week cannot be underestimated. President Trump meets with Chinese President Xi at the summer palace, Mar-a-Lago later this week, defining the relationship which may be the most important internationally.
Trade will be top of the agenda, with rising Geo-Political pressures of the South China Sea and North Korea, conflict points. US Factory Orders and Durable Goods Orders were both positive while markets await action from the administration. The Dollar gained some ground against the Yen, trading 110.50, while the EUR held 1.0650.
The NZ Dairy auction was positive, but failed to inspire the KIWI, which completely surrendered 0.7000. The rising reserve can be blamed, which also assisted the weakening AUD, which fell to 0.7550.
The AUD was impacted by the RBA, which left rates unchanged, despite massive house price pressures. Household debt and soaring house prices may cause alternative action from the RBA but rates cannot be raised due to concerns over growth in an economy transitioning from the mining boom. Loose monetary policy will drive currencies with differentials on the move!
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FX MarketCollinson Commentary - Apr 4 - Dow opens on a soft note
The Dow opened the week softer with ISM Manufacturing and PMI data both flat. The coming week will give an insight in to the Feds perception of the US economy with the release of Minutes.
US Employment data will be a strong indicator, driving equities and currencies, with Challenger, ADP and Non Farm Payrolls. The Dollar remained soft, with the EUR trading 1.0650, while the JPY moved below 111.00.
Commodity currencies drifted lower, with the AUD trading 0.7600, while the NZD battled to hold 0.7000. EU Manufacturing PMI was flat and Unemployment remained high and static. Global Trade data releases, this week, will reveal the state of demand for goods and services and underlying support for commodities.
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FX MarketCollinson Commentary - Apr 3 - Looking the week's data
Chinese Manufacturing and Non Manufacturing PMI was steady with no surprises. The Chinese economy has supported commodity demand and propping up the associated currencies despite a rising reserve. The AUD trade 0.7625, while the KIWI attempts to hold the big figure, 0.7000.
The RBA decision in the coming week will give useful insight into the Central Banks view of the Australian economy. There is expected to be enough uncertainty to allow current soft monetary policy to remain.
The US will look to important jobs reports, lead by the ADP and Challenger, followed by the Non Farm Payrolls and the Employment number. There will be a slew of Manufacturing data globally, along with global trade numbers. Attention will remain on the US legislative process and the Trump administrations progress on their click here and here Or for the latest update click here
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