Collinson FX Market Commentary - Aug 19 - Bulls should not gallop

by Collinson FX on 19 Aug 2015 Collinson FX Market Commentary - Aug 19 - Click here to find out how to get CollinsonFX's free iPhone app

Aug 19 - Equities markets gave up the previous days gains, overnight, as poor housing data confirmed weakness in the US economy. US Building Permits fell 16.3%, while Housing Starts flat-lined, hitting a major leading index. There have been no major Geo-Political issues to give direction but economic data remains constrained.

The Dollar will be the major victim if the Fed decides to defer promised interest rate rises. The EUR is now looking to test 1.1000, on the downside, while the GBP slipped to 1.5625. Commodities softened, which lead to a corresponding fall, in the associated currencies.

The AUD fell to 0.7330, looking technically vulnerable, while the NZD dropped below 0.6600. The RBA Minutes gave no reason for the bulls to gallop around the paddock, highlighting insipid growth, translating challenging local economic conditions. These are testing times and technicals are at crucial downside levels.

Collinson FX Market Commentary - Aug 18 - USD up on interest guess

Aug 18 - Equities assumed the natural move north, with an aversion to cash, due to the lack of return. The attraction of a positive reward from shares drove US markets in to the positive after diving early in response to a terrible Empire State Manufacturing Survey.

The NAHB House Market Index was the trigger to turn markets positive, while speculation of a Fed interest rate rise, drove the Dollar up. The EUR slipped back to 1.1070, while the GBP dropped below 1.5600, with little to support European markets. Oil continued to fall, drifting below $42, although consolidation in other commodity prices supported the associated currencies.

The NZD pushed back above 0.6550, while the AUD consolidated around 0.7360, attempting to build technical support levels. The RBA Minutes may reflect global economic weakness and lead to further speculation of the Feds current thoughts with regards the much spiked rate rise!


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.