Collinson FX Market Commentary - July 22 - RBNZ stalks KIWI
by Collinson FX on 22 Jul 2015
Fiji 007 - Warmer climes - Fiji - July 2015 Richard Gladwell
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Collinson FX Market Commentary - July 22 - RBNZ stalks Click here to find out how to get CollinsonFX's free iPhone app
July 22 - Equity markets retraced steadily overnight with little to influence on the Geo-Political level. Economic data release was thin globally so markets had the opportunity to focus on US earnings. These were not great and equities reacted accordingly. Oil rallied back above the magic $50 mark while Gold pushed back towards $1,100.
This was reflected in the USD, with the Dollar crashing to EUR 1.0930, while the GBP floundered trading to 1.5550. The boost to commodities has been reflected in the associated currencies, with the AUD breaking back above 0.7400, while the NZD continued to book gains in a recovery act. NZ interest rate differentials remain attractive and the PM has indicated the currency collapse is welcome and perhaps over done.
The KIWI surged through 0.6600 and now awaits a further attack from the RBNZ. Hunger for economic data will be satiated tonight!
Collinson FX Market Commentary - July 21 - KIWI lifts from record lows
July 21 - Equity markets opened the week with steady rises, with no major challenges from Greece or China, to upset the applecart. The underlying problem remains commodity prices, which have been under extreme pressure as global demand falls, exacerbated by the threat of interest rate rises in the US.
Yellen has confirmed a penchant for a rate rise with qualifications!? She has advocated interest rate rises assuming economic markets conform. The 'out' has given markets pause, with detrimental data triggering reaction in currency and equity markets, while increasing downward pressure on commodity prices.
Gold and Oil are leading indicators and have been in a steady decline and impacting associated currencies. The NZD bounced from recent record lows, to trade 0.6570, while the AUDUSD has slipped back to 0.7360 with the RBA minutes today crucial.
Central Bank activity has accentuated falls, by timely rate cuts, to advance falls driven by lower commodity demand. The EUR remained steady, trading 1.0840, while the GBP drifted off to 1.5600. Economic data from Europe and the US will drive equities and currencies while Chinese demand impacts commodity currencies heavily.
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