Please select your home edition
Edition
Collinson and Co

Collinson FX Market Commentary- March 5, 2013 -

by Collinson FX on 4 Mar 2013
Zeddies in the Marborough Sounds Don Gurteen

Collinson FX market Commentary: March 5, 2013

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

Markets remained flat after poor news from Asia and Europe failed to spook investors. A huge week of economic news was set with little action so the Bulls once again resumed the drivers seat. Asian markets were lower after China poured cold water on the housing market with new restrictions on mortgages and deposit requirements.

The Japanese have installed a dove into the Bank of Japan with a new mission of breaking the deflationary economy that has engulfed Japan for the last 20 years. His mission (should he choose to accept it) is to break the flatline and reinvigorate the Asian tiger!. It will take more than Kuroda, with his lax monetary policies, to reignite an economy with serious structural problems and an aging population. China looks to cool the housing bubble but a command economy must result in aberrations. The EUR flirted with 1.3000 again and looks set to challenge the downside.

The AUD has come under extreme pressures with global risk aversion and the local housing market dipping. Building Approvals fell, reversing expectations, and with it confidence. AUD dropped to 1.0100 and look set to test the big, big, big figure. The KIWI was not as volatile, although testing 0.8200, the currency settled at 0.8250.

A huge week of global economic data should frame the markets and expectations should not be high! Any rallies will be fermented in Central Bank Monetary Policy rather than positive economic realities.

Collinson FX market Commentary: March 4, 2013

The Dow closed out the week strongly just below the all-time high of 14.164 ignoring the gloom merchants calling the sequester deadline an apocalypse. Markets were full of confidence after some reasonable economic news and investors on the rise. European markets were mixed after Unemployment data confirmed another rise to 11.9% and inflation contracted confirming the parlous state of the single market.

The EUR hovered around the critical 1.3000 level and the GBP 1.5000 and these psychological 'big figures' may trigger a major move lower. This would need confirmation in terms of economic fundamentals but these will be forthcoming. In the US, Manufacturing rose, as did Consumer Confidence, which supported the bulls but this leg of the rally may come under a stern test this coming week. Markets will be focused on Central Bank rate decisions from the ECB, BoE, BOJ and the RBA which may not see any action but associated commentaries could drive market sentiment.

All important Jobs data in the US and the Fed's Beige Book will have impacts. A plethora of global economic data will drive markets as Technical traders look closely at critical support levels. The AUD remains weak trading just under 1.0200 and the RBA action and Economic reports will heavily impact what is some negative hits to the economy.

The KIWI held 0.8200 but will be impacted by risk aversion. This could be a huge week to begin 'March Madness!'

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 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
Collinson FX Market Commentary - July 13 - Pound surges on confidence
The uncertainty is dissipating and markets are reacting accordingly The GBP surged, with new confidence, pushing to 1.3250. The Japanese PM, Abe, ordered further stimulus from the Bank of Japan and the Yen jumped to 104.75. The Australian Liberals met in Canberra and are awaiting a new cabinet selected by PM, Turnbull. The uncertainty is dissipating and markets are reacting accordingly
Posted on 13 Jul
Collinson FX Market Commentary - July 12 - Commodities and Oil drop
Commodities drifted lower, with Oil falling below $45/barrel, pushing the associated currencies back. Commodities drifted lower, with Oil falling below $45/barrel, pushing the associated currencies back. The AUD traded 0.7525, while the NZD attempts to hold 0.7200. Markets are calm but expect further Central Bank influence over a relatively quiet economic data release week.
Posted on 13 Jul