Please select your home edition
Edition
Collinson and Co

Collinson FX Market Commentary- August 17, 2012 - No surprises

by Collinson FX on 17 Aug 2012
Canada sailing in the 49ers on Day 9 of the 2012 Olympic Regatta in Weymouth Richard Gladwell www.photosport.co.nz

Collinson FX market Commentary: August 17, 2012

Angela Merkel travelled to Canada to discuss the EU debt crises with the PM,Stephen Harper, and reiterated her support for Draghi's Bond buying plan. This was enough to boost markets after moving sideways all week. Equities and Commodities both booked gains despite weak economic data.

In the US, manufacturing continued to slide with a further contraction of the Philly Fed Survey. Weekly Jobless Claims rose although mixed housing data gave some reason for hope. Building Permits rose 6.8% but the flow on was stunted with Housing Starts falling 1.1%.

The economic data dragged on the USD pushing the EUR to 1.2365 and commodity currencies north. The AUD broke above 1.0500 again with further supply issues boosting commodity prices. The KIWI also regained some lost ground with the severe US drought impacting soft commodities.

The NZD moved up to trade just under 0.8100. No real surprises are expected for the final trading day of the week so watch for further comments from political leaders to give direction.


Collinson FX market Commentary: August 16, 27, 2012

Bad news has become good news as world markets stand on their head. Economic data has been nothing less than terrible revealing a story of recession in Europe and no solution to the debt/deficit crises. Growth has now confirmed the recession in Europe but the inability to confront the issues has resulted in a steady decline.

Economic data continues to deteriorate but the sheer lunacy of market expectations, in terms of Central Bank intervention, remains. The worse the crises deepens the higher the expectation of further monetary stimulus boosting markets!? The crazy situation is exemplified with hope revolving around liquidity and not fiscal consolidation. Stop spending more than you earn. Keynes was wrong!

In the US, markets remained steady in the calm before the storm. Industrial Production rose 0.6% and Manufacturing by 0.5% reflecting the relative improvement in the terms of trade. The New York Manufacturing Index fell, contradicting production data and sending mixed messages. The EUR traded below 1.2300 and sideway moves reflects the sentiment of market participants.

Commodities also showed little, with the AUD moving back above 1.0500 despite a fall in Consumer Confidence. The KIWI rallied back to 0.8070 in a tight trading range awaiting substantive eco-political news.
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.

Collinson and Co

Related Articles

Collinson FX Market Commentary - Aug 4 - Brexit bites
Weakness in commodity currencies continued, with the AUD drifting to 0.7440, while the NZD held 0.7430 The Bank of England Governor warned of threats to the UK economy, citing Brexit and the impact this may have on the economy.US Factory Orders continued to post gains, as did Durable Goods Orders, but this was qualified by a contraction in the ISM Non Manufacturing data.
Posted on 5 Aug
Collinson FX Market Commentary - Aug 3 - Apple has a blowout
The AUD floundered around 0.7960, while the NZD drifted back towards 0.7400, looking for direction. Apple exceeded all expectations on earnings and this pushed the Dow to a close above 22,000! The tech company beat on earnings on both above and below the line revenue. This enabled the DOW to push to yet another milestone. The Dollar continued to fade, with the EUR rebounding to 1.1850, while the GBP hit 1.3250.
Posted on 3 Aug
Collinson FX Market Commentary - Aug 2 - USD rebounds
The NZD was also hit by the rebounding Dollar, falling back towards 0.7450, The Dow surged through 22,000, making every post a winner, supported by market optimism and earnings. Equity markets have been soaring, with abounding confidence, since the election of President Trump. De-regulation is well underway, while the promise of tax reform has been a fundamental, thus essential to support the bull market.
Posted on 2 Aug
Collinson FX Market Commentary - July 30 - AUD rises higher
The reserve weakness has directly impacted the commodity currencies, with the AUD pushing towards 0.8000, Oil prices continued to post gains, pushing up to $48.50, as a direct result of the Russian led OPEC/Non-OPEC meeting. US Housing data continued to improve and this leading sector may lead the economy but tax reform is sorely needed. The flagging reserve allowed commodity currencies to continue to gain ground, with the AUD breaking above 0.7950, while the NZD pushed above 0.7450.
Posted on 31 Jul
Collinson FX Market Commentary - July 27 - Oil up after meeting
AUD breaking above 0.7950, while the NZD pushed above 0.7450. Oil prices continued to post gains, pushing up to $48.50, as a direct result of the Russian led OPEC/Non-OPEC meeting. US Housing data continued to improve and this leading sector may lead the economy but tax reform is sorely needed. The flagging reserve allowed commodity currencies to continue to gain ground, with the AUD breaking above 0.7950, while the NZD pushed above 0.7450.
Posted on 27 Jul
Collinson FX Market Commentary - July 25 - Oil production limited
The AUD has settled around 0.7900, with huge gains being digested, while the NZD spiked to 0.7450 OPEC and Non-OPEC Oil producers are meeting, with Russia taking a leading role, in an effort to limit production to reduce stocks. Oil has shown limited upside, in the last week, but remains fundamentally challenged. The oil price is the life blood of Russia and OPEC but demand and oversupply have limited any upside.
Posted on 25 Jul
Collinson FX Market Commentary - July 20 - Oil price slips up
The AUD has been surging strongly, trading around 0.7950, while the NZD has attempted to consolidate around 0.7350. Oil has quietly worked its way back to $47/barrel, in line with gains posted by other commodity prices, directly translating into stronger currencies. The AUD has been surging strongly, trading around 0.7950, while the NZD has attempted to consolidate around 0.7350. Eyes are firmly on the ECB and there actions. Expectations are for no rate change but for hawkish commentary from Draghi.
Posted on 20 Jul
Collinson FX Market Commentary - July 19 - US Rally hits wall
AUD rallying above 0.7900, while the NZD looks to 0.7350 The US Dollar continued to flounder, ahead of the ECB meeting, Thursday. The EUR rallied strongly, to 1.1550, with expectations of an end to the extreme monetary policy currently in place. The GBP did not react, holding around 1.3050, tempered by lower than expected inflation data.
Posted on 19 Jul
Collinson FX Market Commentary - July 18 - China has positive data
The AUD drifted below 0.7800, while the NZD held above 0.7300, awaiting important CPI data released today. Chinese economic performance translates directly into demand driven support for commodity prices. This allowed the currencies to consolidate after spiking at the close of last week. The AUD drifted below 0.7800, while the NZD held above 0.7300, awaiting important CPI data released today. The GBP traded 1.3050, while the EUR pushed towards 1.1500, ahead of the ECB meeting Thursday.
Posted on 18 Jul
Collinson FX Market Commentary - July 15-16 - US Dollar hit hard
The AUD jumped to 0.7820, while the NZD consolidated above 0.7300, echoing the global move against the Dollar. The AUD jumped to 0.7820, while the NZD consolidated above 0.7300, echoing the global move against the Dollar. The coming week will provide plenty of cannon fodder in the form of global economic data releases and Central Bank activity. The ECB will be a major influence, in the coming week, while RBA minutes and Employment data will drive local currency moves.
Posted on 17 Jul