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 - June 20 - Fresh start in Europe
The rising reserve pushed the AUD below 0.7600, while the NZD settled just above 0.7200. The French Parliamentary elections confirmed a majority for the new President. Macron has been a revelation with a new political party sweeping aside the traditional left and right parties. A fresh start in Europe has allowed markets some optimism and equities gained ground
Posted on 20 Jun
Collinson FX Market Commentary - June 15 - ANZAC dollars jump
The Dollar did not react to the rise, with the AUD jumping to 0.7570, while the NZD pushed up to 0.7240 The Dollar did not react to the rise, with the AUD jumping to 0.7570, while the NZD pushed up to 0.7240. German CPI was flat, while EU Industrial Production contracted , damaging any gains against the Dollar. The EUR barely held 1.1200, while the GBP consolidated the rebound, trading 1.2740.
Posted on 15 Jun
Collinson FX Market Commentary - June 14 - US markets re-bound
The AUD traded 0.7530, while the NZD regained 0.7200 The EUR was steady around 1.1200, while the GBP rebounded to 1.2750, with stronger inflation and housing data. Political conditions remain tense, although a Conservative government will be formed, but the leadership may be fluid!? The AUD traded 0.7530, while the NZD regained 0.7200, ahead of local trade numbers set to be released.
Posted on 14 Jun
Collinson FX Market Commentary - June 8 - All eyes on Brits
AUD jumped to trade around 0.7550, while the KIWI resisted 0.7200. All eyes remain on the UK election. The world record for continuous growth in GDP was set by the Australian economy, growing 0.3%, in line with expectations. The news was a boon for the currency, which jumped to trade around 0.7550, while the KIWI resisted 0.7200. All eyes remain on the UK election.
Posted on 8 Jun
Collinson FX Market Commentary - June 6 - NZD tries 72c
the AUD to push through 0.7500. The NZD tested 0.7200 Markets were steady overnight with the Dollar and equities drifting. The ECB rate decision is expected to continue QE but may signal a change in attitude. The associated commentary may indicate the Central Bank may begin to recognise stronger economic conditions and accede to the Bundesbank's demands.
Posted on 7 Jun
Collinson FX Market Commentary - June 3 - Brit Election Race fears
The Dollar did suffer the latest jobs data, with the EUR pushing back towards 1.1300 The Dollar did suffer the latest jobs data, with the EUR pushing back towards 1.1300, while the JPY hit 110.40. The GBP will continue to track the pending election polls, holding below 1.2900, as the race tightens. It would be a massive upset in the Labour party upset the Tories, on a Brexit scale, which would collapse the currency
Posted on 4 Jun
Collinson FX Market Commentary - June 2 - Trump plays to the gallery
The NZD slipped back to 0.7050, while the AUD continued to unwind, falling below 0.7400 Trump withdraws from the Paris Climate agreement and US markets loved it! Great news for the US economy and the energy sector allowing equities and the Dollar to rally strongly. Trump elaborated on the agreement, pointing out the damage it does to the US economy, while pointing out the Chinese and Indian economies have a free-for-all.
Posted on 2 Jun
Collinson FX Market Commentary - June 1 - NZD looking for a new home
The NZD is building technical resistance at 0.7100, while the AUD slipped back to 0.7425 The NZD is building technical resistance at 0.7100, while the AUD slipped back to 0.7425, unaided by weaker commodity prices. There has been a slew of global economic data, but most in line with expectations, so a surprising number or a Geo-Political event may be needed to spark the stalemate.
Posted on 1 Jun
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 on 27 May
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