Please select your home edition
Edition
Collinson and Co

Collinson FX Market Commentary- June 18,2013 - Bulls emerge refreshed

by Collinson FX on 18 Jun 2013
Race Officer - 2013 Auckland Cup, Day 2 © Richard Gladwell www.photosport.co.nz

Collinson FX market Commentary: June 18, 2013

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

Markets were controlled by speculation of the Fed's actions arising from the FOMC meeting this week. A report from the Financial Times suggested Bernanke would announce a tapering of the $85 Billion QE infinity Policy this meeting. This cut the big gains being booked on global equity markets.

Status Quo was the expectation prior to this report and markets had been surging strongly. The article pared gains as speculation is overwhelming market fundamentals. The USD regained some momentum with the EUR back to 1.3360 and the GBP to 1.5715. In the US, the Empire State Manufacturing reported gains and gave a positive outlook for Manufacturing in the zone. This complimented a rise in the NAHB Home Price Index.

The Bulls have come out refreshed but this all relies on Ben Bernanke. Commodity demand fell and prices reacted accordingly, which pushed demand for the associated currencies lower. The KIWI fell back below 0.8000 as the USD regained some ground despite local Consumer Confidence rising. The AUD fell back to 0.9550 with momentum flagging and local news of stalling new vehicle sales.

Political turmoil is rife as Parliamentarians return to the Capital for their final sitting before the election. The political instability can not be helping the Australian market which is being reflected in the currency. Market determinations will revolve around the Fed and their announced decision.

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 - Sept 29 - Reds back oil pumping cuts
Opec plus Russia reached an agreement to cut oil production overnight which allowed the price to move back to $47/barrel Opec plus Russia reached an agreement to cut oil production overnight which allowed the price to move back to $47/barrel. They do not have the sway of the cartels from the past and solidarity will be desperately hard to pursue.
Posted today at 12:55 am
Collinson FX Market Commentary - Sept 28 - USD weakens as others gain
KIWI jumped back towards 0.7300, while the AUD broke above 0.7650 This did little for the Dollar, as the EUR jumped to 11220, while the GBP regained 1.3000! The reserve weakness enabled the KIWI, which jumped back towards 0.7300, while the AUD broke above 0.7650. Economic data confirms Central Bank speculations and realities.
Posted on 28 Sep
Collinson FX Market Commentary - Sept 27 - Oil Production cuts?
The NZD was under pressure, with speculation of RBNZ cuts, adding to worrying trade data. The NZD was under pressure, with speculation of RBNZ cuts, adding to worrying trade data. The trade deficit widened, with a rise in Imports and a fall in Exports, spurred by the overvalued KIWI. The NZD fell to the low 0.72's, but regained some ground overnight, to trade above 0.7250.
Posted on 26 Sep
Collinson FX Market Commentary - Sept 25 - The price of Brexit
NZD fell to 0.7230, while the AUD drifted back towards 0.7600 European economic data was benign, as expected, with Manufacturing/Services/Composite PMI data flat. French GDP contracted and promises of a future, without Britain, is not bright. The EU has brought in many members, over the years, but most are net 'takers'.
Posted on 26 Sep
Collinson FX Market Commentary - Sept 23 - USD continues to sag
NZD clings on to 0.7300. The AUD has pushed above 0.7650, but drifted in late trading, despite a weakening Dollar. The ECB and RBNZ continued the inaction of the Fed and the Bank of Japan. The RBNZ has left rates unchanged and seemed content with local economic conditions. The Jaw-boning of the currency continued, but to no avail, as the currency holds around 0.7300.
Posted on 24 Sep
Collinson FX Market Commentary - Sept 22 - Bank flicks policy
Commodity currencies moved higher, with the AUD testing 0.7600, while the KIWI consolidates above 0.7300. Markets were dominated by the Fed and the Bank of Japan overnight. The BoJ was the first cab off the rank, announcing a complete upheaval of the Banks Central Bank monetary policy. The attempt is to control asset growth and interest rates through monetary manipulation.
Posted on 22 Sep
Collinson FX Market Commentary - Sept 21 - Dairy Auction stunts KIWI
The New Zealand Dairy Auction revealed a halt in recent rises, stunting the currency The Dollar remained steady, with the EUR trading 1.1150, while the GBP slipped below 1.3000. The New Zealand Dairy Auction revealed a halt in recent rises, stunting the currency, with the KIWI attempting to hold 0.7300. Australian consumer confidence was steady, which was reflected in the currency, which traded around 0.7550. All eyes remain on the Fed and the Bank of Japan!
Posted on 21 Sep
Collinson FX Market Commentary - Sept 20 - Bloomberg bats for KIWI
Bloomberg has come in to bat for the KIWI, offering justification for the relative currency strength Bloomberg has come in to bat for the KIWI, offering justification for the relative currency strength, citing the 3.6% GDP number. This will undermine any argument the RBNZ has to cut further, but look at comparable interest rates?? The NZD trades around 0.7300, while the AUD holds around 0.7550, fighting a rising reserve.
Posted on 20 Sep
Collinson FX Market Commentary - Sept 18 - RBNZ decision factored in?
The AUD fell below 0.7500, while the NZD dropped to 0.7250, perhaps anticipating the coming RBNZ rate decision!? The Pounds momentum seems to be in reverse, with the Dollar aiding to the dovish Bank of England monetary policy. The coming week will not be a huge one for economic data releases, so expect further speculation, with regards Central Bank activity. The AUD fell below 0.7500, while the NZD dropped to 0.7250, perhaps anticipating the coming RBNZ rate decision!?
Posted on 19 Sep
Collinson FX Market Commentary - Sept 16 - US shrinks while NZ grows
The NZD also rallied back to 0.7300, boosted by the reserve and better than expected GDP growth The NZD also rallied back to 0.7300, boosted by the reserve and better than expected GDP growth, while Manufacturing PMI was steady. Data just confirms speculation on Central Bank moves and markets will focus on the Fed and Bank of Japan announcements next week!
Posted on 16 Sep