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.photosport.co.nz

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 - May 26 - KIWI goes higher
The NZD pushed above 0.7050, while the AUD slipped back to 0.7440 The only currency unaffected by the rally in the reserve was the KIWI!? The strong fiscal position, demonstrated by the Budget, has given the local currency legs. The NZD pushed above 0.7050, while the AUD slipped back to 0.7440, as a contrast between disparate fiscal positions are drawn.
Posted today at 1:22 am
Collinson FX Market Commentary - May 25 - KIWI surges past 70c
The NZD has surged above 0.7000, supported by a sliding reserve, while the AUD attempts to regain 0.7500. The Dollar remained depressed, with the EUR holding 1.1200, while the GBP traded 1.2950. Local markets will digest the NZ Budget, which will likely be an election economic plan, affirming the stronger economy allows delivery. The NZD has surged above 0.7000, supported by a sliding reserve, while the AUD attempts to regain 0.7500.
Posted on 25 May
Collinson FX Market Commentary - May 20-21 - All currencies rise
AUD hitting 0.7450, while the NZD traded above 0.6900 again. The EUR pushed through 1.1200, while the GBP broke above 1.3000, despite weak economic confidence in the Eurozone. The weak reserve enabled commodity currencies, with the AUD hitting 0.7450, while the NZD traded above 0.6900 again. Trumps tour will provide Geo-Political points of issue but may calm the domestic politic.
Posted on 22 May
Collinson FX Market Commentary - May 19 - Pressure off Trump
The AUD held above 0.7400, supported by lower unemployment rate (down to 5.7%), while the NZD slipped back below 0.6900. Markets recovered some of yesterdays lost ground, after an Independent Counsel was appointed to investigate the Russian interference, thereby relieving pressure on Trump. The obstruction charge, that prompted talk of Trumps impeachment, was also questioned. A tape circulated that Comey denied the Presidents intervention.
Posted on 19 May
Collinson FX Market Commentary - May 17 - NZD and AUD all rise
The AUD also continues to rally, consolidating above 0.7400, after the RBA minutes confirmed little change in monetary p The NZ Dairy auction continued to improve, supporting a recovery in the currency, pushing the NZD towards 0.6900. US Housing Starts contracted 2.6%, while Building Permits slipped 2.5%, giving little reason for a Dollar rebound. The AUD also continues to rally, consolidating above 0.7400, after the RBA minutes confirmed little change in monetary policy.
Posted on 17 May
Collinson FX Market Commentary - May 15 - Oil surges after Price Fix
The AUD broke back above 0.7400, in to some clear air, while the NZD held above 0.7850. Oil surged back towards $50/barrel, after Russia and Saudi Arabia struck a deal on limiting supply, looking to push the price up to a higher trading band. US equity markets jumped and the Dollar slipped lower.
Posted on 16 May
Collinson FX Market Commentary - May 13-14 - Budget imbalance
The KIWI (0.6850) has been battered, after the RBNZ indicated accommodative monetary policy would continue The AUD has been under extreme pressure, but quietly moves back towards 0.7400, post Budget. The Australian Budget signalled a different approach to fiscal balance. The Government has been unable to cut some of the expenditure required, being curtailed in the Senate, while political will has dissipated.
Posted on 15 May
Collinson FX Market Commentary - May 12 - Banks sit on their hands
The NZD dropped a big figure, to 0.6828, but recovered overnight to settle around 0.6850 The Bank of England and RBNZ both left rates unchanged, as expected, but associated commentaries were negative. The Bank of England continued current accommodative Monetary Policy and indicated a penchant for rises 'assuming a smooth transition Post-Brexit'! The GBP drifted back to 1.2890, after a recent bull run
Posted on 11 May
Collinson FX Market Commentary - May 9 - Aussies tax banks
The AUD has fallen back to 0.7340, while the NZD slipped below 0.6900, as the reserve recovers. The Australian budget was delivered and changed the focus from a reduction in spending to an expansion of revenue. This is a different approach to the goal of balancing the budget. This is a move away from the ideological 'smaller Government' to expanding tax revenues and avoiding electoral pain.
Posted on 10 May
Collinson FX Market Commentary - May 7 - Macron win expected
The associated currencies were beneficiaries, with the AUD rallying above 0.7400, while the NZD consolidated above 0.690 The EUR trades around 1.1000, so nothing less than a victory for Macron will do, a loss being catastrophic. The only way LePen can make a dent is a strong turnout from the minority, enthusiastic supporters, while inertia is a threat. There is little upside, so most will be square, with a few reckless punters short!
Posted on 7 May