Please select your home edition
Edition
Collinson and Co

Collinson FX Market Commentary- August 21, 2012 - Mixed messages

by Collinson FX on 21 Aug 2012
Amer Sports Too skipper Lisa McDonald 2001-02 Volvo Ocean Race Carlo Borlenghi © http://www.carloborlenghi.com

Collinson FX market Commentary: August 21, 2012

Mixed messages from Europe sent stocks lower although quiet economic data releases restricted moves. The Bundesbank has reiterated their reservations with regards the ECB's intended Bond buying program.

The reality is that Germany becomes the lender of last resort to a spiralling out of control Europe. A story was also circulating of the ECB imposing a cap on EU Bonds, would have enormous implications in terms of free market operation with far reaching unintended consequences. Merkel meets Hollande Thursday so this may have an impact as they mutually attempt to reassure markets. The EUR has traded sideways at 1.2350 and the GBP reaching 1.5700.

In the US, the Chicago Fed's Manufacturing Index slid lower but the lack of a dramatic collapse in the economy prevents the Fed intervening. Markets will look to the EU Debt/Deficit crises developments for direction and the Fed minutes later in the week.

The AUD stabilised to trade 1.0450 with political rumours swirling of an early election driven by a failure in the Budget surplus and an avalanche of pressure from failed economic policies. A look at the RBA minutes may give insight to the Central Banks view of economic conditions.

The KIWI also held below 0.8100 with not much going on domestically. Central Banks and leading politicians will provide market direction with technicals pointing to substantial resistance on the upside!

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 - Dec 9 - NZD climbs against all
The NZD has been a beneficiary of all the good news, pushing back to 0.7150 The NZD has been a beneficiary of all the good news, pushing back to 0.7150, while the AUD has traded 0.7450 despite weak GDP growth data. Commodities remain a strong story only contained by a rising reserve.
Posted on 9 Dec
Collinson FX Market Commentary - Dec 8 - Australian economy struggles
The currency recovered some of the losses overnight, to trade 0.7470, while the NZD consolidates above 0.7125. The Australian economy is struggling and the contraction in economic growth is a historical symptom of this. The currency recovered some of the losses overnight, to trade 0.7470, while the NZD consolidates above 0.7125. Action and rhetoric from the ECB will drive markets overnight, with the Fed next week expected to turn the page on QE infinity, rising from the ashes.agnation and disruption.
Posted on 8 Dec
Collinson FX Market Commentary - Dec 7 - EU mired in stagnation
AUD sets out around 0.7450, while the NZD attempts to hold 0.7100. The AUD may come under pressure from expected weak GDP data today, but sets out around 0.7450, while the NZD attempts to hold 0.7100. The threats impacting the global economy are coming from Europe and Central Bank activity is being driven by economic fundamentals. The Fed is in a completely different cycle, with economic demand and growth, while the EU remains mired in stagnation and disruption.
Posted on 7 Dec
Collinson FX Market Commentary - Dec 6 - NZD recovers post Key
The NZD lost ground on the news, but also recovered overnight, to trade 0.7150. The NZD lost ground on the news, but also recovered overnight, to trade 0.7150. The AUD had slipped with the rising safety-play of the reserve, but found ground, heading back towards 0.7500! watch out for the RBA decision, with no action expected, although associated commentary may impact the currency! Onwards and upwards for markets and the Dollar remains king!
Posted on 6 Dec
Collinson FX Market Commentary - Dec 3/4 - European mayhem
AUD back up to 0.7445, while the NZD breached 0.7100. The EU is descending in to mayhem and France and Germany may seek to salvage what they can and retreat from goals of globalisation. Oil continues to bank gains, post-OPEC, leading a commodity revival. This has been enhanced by the softening reserve, with the AUD back up to 0.7445, while the NZD breached 0.7100. Onwards and upwards for markets and the Dollar remains king!
Posted on 4 Dec
Collinson FX Market Commentary - Dec 2 - The (US) Dollar remains king!
The AUD regaining 0.7400, while the KIWI stalled around 0.7050. The Dollar was steady, but remains bid, with the EUR trading 1.0625 and the Yen 114.40! The GBP has fared well, moving back to 1.2600, as a kindred spirit to a Trump USA. The commodity currencies have solidified, with the AUD regaining 0.7400, while the KIWI stalled around 0.7050. Onwards and upwards for markets and the Dollar remains king!
Posted on 1 Dec
Collinson FX Market Commentary - Dec 1 - OPEC defies pundits
The AUD lost a big figure, to trade below 0.7400, while the NZD slipped to 0.7075. OPEC have defied all the sceptics and done a deal! The Cartel have agreed to cut Oil production by 4.5%, allowing Oil prices to surge towards $50/barrel, feeding Energy companies. This is huge news in the energy space but solidarity will have to be seen to be believed!?
Posted on 1 Dec
Collinson FX Market Commentary - Nov 30 - Oil drops to $45/barrel
NZD breaks 0.7100, while the AUD looks towards 0.7500 OPEC confidence is low, with a diverse group not expected to agree to any supply restrictions, pushing Oil back to $45/barrel. The USD has settled into a lull, which has boosted resurgent commodity prices, as growth drives demand. The associated currencies have been beneficiaries, with the NZD breaking 0.7100, while the AUD looks towards 0.7500.
Posted on 30 Nov
Collinson FX Market Commentary - Nov 29 - Iran undermines oil price
The KIWI has spiked back to 0.7050, while the AUD has pushed to 0.7460 Oil prices are being watched closely, with OPEC meeting this week, all keenly awaiting the outcome. Iran has re-entered the market and this has undermined any supply caps previously agreed.
Posted on 29 Nov
Collinson FX Market Commentary - Nov 26/27 - Markets back in sync
The AUD closed the week at 0.7430, while the NZD broke strongly above 0.7000, driven by Dollar behaviour. Markets are now back in sync, with good economic news, driving positive reactions in demand for equities and commodities. Post-GFC markets have been upside down, with negative economic data driving equities up, due to Central Bank interventionist monetary policy.
Posted on 28 Nov