Please select your home edition
Edition
Collinson and Co

Collinson FX Market Commentary- August 28, 2013 - War talk crash

by Collinson FX on 29 Aug 2013
© Richard Gladwell www.richardgladwell.com

Collinson FX market Commentary: August 28, 2013

http://itunes.apple.com/app/collinsonfx/id533360650?mt=8!Click_here to find out how to get CollinsonFX's free iPhone app

Geopolitical events overwhelmed Central Bank activity and daily economic releases. US equities crashed with the impending military action against the Syrian regime. Chemical weapons may prove the trigger for the West to finally act to prevent a genocidal nation destroying its own people.

This has overshadowed the fixation with Central Bank activity and overwhelmed equity markets, who do not like war. Currencies remained steady with the EUR trading 1.3380 and the GBP 1.5540. US Consumer Confidence rose and the Richmond Fed Activity Index also beat expectations providing solid improvement in economic data releases but these were largely ignored due to international military activity.

The Case-Shiller Home Price Index also booked gains of over 12% and economic conditions continue to improve increasing the likelihood of tapering next month.Turmoil internationally does not assist risk sentiment and the AUD has now slipped below 0.9000.

The KIWI's recent weakness is manifesting, trading below 0.7800. Action aplenty in the Middle East has added further variables into the mix and markets hate uncertainty!

Collinson FX market Commentary: August 27, 2013

The Feds tapering program is again under scrutiny with data dependence the determinant and deteriorating economic reports conflicting with the introduction. Durable Goods Orders fell 7.3%, more than expected, and does not bode well for the Feds perception of the economic recovery and thus the reduction of QE Infinity.

The Housing data tonight will be a litmus test and any erosion of confidence may delay further talk of reduction in stimulus. The Dallas Fed Activity reported an improvement but economic data will be crucial during this week.

The EUR remained steady at 1.3375 and the GBP 1.5575. Commodities continue to drift and weakening trade data in NZ has confirmed a growth in Imports without any corresponding rise in Exports. The extension of credit and a booming Housing Market may be driving the consumer but reversing recently improving trade numbers.

The KIWI trades 0.7830 and below 0.8700 in the cross with the AUD. The AUD has held 0.9000 and awaits directional impetus from the US Central Bank.

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 - July 29 - Italy sweats on stress test
This took the shine off the recent rally in the NZD which slipped back to 0.7060 The JPY remains firm, trading around 105.25, in preparation. Commodity demand was slack on the energy and agricultural front, while metals eked out some gains. This took the shine off the recent rally in the NZD which slipped back to 0.7060, while the AUD continued to toy with the 0.7500 mark.
Posted on 30 Jul
Collinson FX Market Commentary - July 28 - Japan lights afterburner
The AUD settled below 0.7500, while the KIWI rallied to above 0.7050, despite all efforts by the RBNZ. The AUD settled below 0.7500, while the KIWI rallied to above 0.7050, despite all efforts by the RBNZ. The NZ Central Bank has done all it could to jaw-bone the currency lower but will now need to cut interest rates. The RBNZ has been reactive since the 2008 economic collapse
Posted on 28 Jul
Collinson FX Market Commentary - July 27 - Steady trade data ups KIWI
NZ Trade data was steady and allowed for the NZD to push back above 0.7000, while the AUD flirts with 0.7500 The JPY slipped back to 104.70, ahead of the Bank of Japan meeting, while the EUR approached 1.1000. NZ Trade data was steady and allowed for the NZD to push back above 0.7000, while the AUD flirts with 0.7500. All eyes remain on the Fed!
Posted on 26 Jul
Collinson FX Market Commentary - July 24 - Brit's sentimental slowdown
The AUD traded down to 0.7450, while the KIWI consolidated below 0.7000 There may be signs of a slowdown in the British economy as the Composite and Services PMI both plunged, while EU data held steady. This is not as a result of actual circumstances changing but sentiment.
Posted on 25 Jul
Collinson FX Market Commentary - July 22 - RBNZ's words undermine NZD
The AUD slipped below 0.7500, while the NZD surrendered the huge number of 0.7000 The AUD slipped below 0.7500, while the NZD surrendered the huge number of 0.7000, undermined by the RBNZ statement telegraphing further interest rate cuts.
Posted on 22 Jul
Collinson FX Market Commentary - July 21 - It's official, No slowdown
The AUD remains below 0.7500, while the NZD battles to hold the very big number of 0.7000 Oil fell to $45/barrel, leading a raft of commodities lower, putting a ceiling on associated currencies. The AUD remains below 0.7500, while the NZD battles to hold the very big number of 0.7000. Central Bank intentions in Australia and NZ are clear, with NZ LVR's, clearing the decks in preparation for rate cuts.
Posted on 22 Jul
Collinson FX Market Commentary - July 20 - Markets make full recovery
The AUD trades below 0.7500, while the NZD is headed towards 0.7000 RBA minutes provided a great summary of global economic conditions and how they impact the Australian situation. The RBA considered the impact of the Brexit and recognised that markets were back to pre-brexit levels, except the GBP
Posted on 20 Jul
Collinson FX Market Commentary - 19 July - Brexit a boon for Brits?
NZ CPI came in at 0.4%, for Q2, missing expectations. This pushed the currency below 0.7100 The tumultuous weekend of terrorism in France and a failed coup in Turkey failed to unsettle markets. Equities and currencies commenced the week quietly with the USD settling and share markets perched just below highs. QE has provided massive amounts of cheap money to supply equity markets
Posted on 19 Jul
Collinson FX Market Commentary - July 16/17 - French attack hits USD
The NZD was undermined by the RBNZ commentary, which enhanced the effect of a rising reserve The NZD was undermined by the RBNZ commentary, which enhanced the effect of a rising reserve, with the KIWI drifting back towards 0.7100. Geo-Political events are overwhelming economic events, while Central Bank intervention has driven market moves, filling the space of vacuous global fiscal policies.
Posted on 18 Jul
Collinson FX Market Commentary - July 15 - RBNZ's surprise adjustment
The RBNZ surprised many, with an adjustment between cycles The RBNZ surprised many, with an adjustment between cycles, allowing commentary to drive the currency back below 0.7200. The RBNZ never seem to quite get it right in the Monetary Policy realm and this interruption is a correction of the last, ham-fisted, statement
Posted on 14 Jul