Please select your home edition
Edition
Collinson and Co

Collinson FX Market Commentary- October 8, 2013 - Debt ceiling looms

by Collinson FX on 9 Oct 2013
Stoke (NZL) - 18ft International - Day 3, 11 September 2013 © Richard Gladwell www.photosport.co.nz

Collinson FX market Commentary: October 8, 2013

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

The US Government partial shutdown and the looming debt ceiling expiry continued to dominate market direction.

An impasse has grown between the Republican House and the Democratic Presidency and Senate. The Republicans have been forced into a corner and do not want to capitulate and the Democrats want to force their position of strength. The problem only becomes more serious when the Debt Limit is reached mid October. It is hard to see a compromise without a capitulation and the Tories appear the more likely. The disruption to markets come with the uncertainty and this has been hitting equities hard in a month renown for major equity adjustments.

The USD was steady with the EUR trading 1.3575 and the GBP 1.6085. Commodities were mixed and the AUD traded 0.9435 while much of the Country was closed for Labour Day. The KIWI also experienced light trading and held near 0.8300. Watch US and European bonds for signals of danger during these political negotiations as this will reflect the danger levels in the markets.

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 - Feb 17 - Bullish markets in US
The AUD was softened by the news, slipping below 0.7700, while the NZD jumped to 0.7225 Australian Employment data was mixed, with Unemployment falling to 5.7%, but this was tempered by a fall in full time employment. The AUD was softened by the news, slipping below 0.7700, while the NZD jumped to 0.7225. Markets are very bullish and this is likely to continue, although action must follow rhetoric in the US.
Posted on 17 Feb
Collinson FX Market Commentary - Feb 16 - Markets have a gay day
AUD looking at 0.7700, while the NZD jumped to 0.7200 The market rally continued with gay abandon, while Trump met with BB Netanyahu at the White House, turning his attention to a peace solution in the Middle East. He also found time to meet with Retailers, for the first time, which was welcomed with a strong rally in Retail Sales.
Posted on 16 Feb
Collinson FX Market Commentary - Feb 15 - US touts interest rate rise
The AUD slipped back to 0.7640, while the NZD dipped below 0.7150, also hit by a bullish reserve. Fed President Yellen made her bi-annual appearance in front of congress informing them of expected rate rises during the current year. She cited growth and inflation as the reason for interest rate rises and that it would be wise to address them sooner rather than later.
Posted on 14 Feb
Collinson FX Market Commentary - Feb 11 - Kiwi flounders as AUS surges
The blow dealt by the RBNZ has been sustained, with the currency floundering below 0.7200 The blow dealt by the RBNZ has been sustained, with the currency floundering below 0.7200, while the AUD marches towards 0.7700. This has provoked a sudden and substantial reversal in the cross rate. The coming week sees an avalanche of global economic data releases although it is hard to see Trump not dominating markets.
Posted on 11 Feb
Collinson FX Market Commentary - Feb 10 - NZD collapses on RBNZ stall
The NZD fell from above 0.7300, to trade 0.7175; the AUD remained steady, trading around 0.7625 The RBNZ left rates unchanged, in their latest Monetary statement, shifting the bias from easing to neutral. Many expected a more bullish approach to interest rates, but the Central Bank predicted no action until 2019. This did not gel with reality. This reading of the monetary situation triggered a collapse in the NZD, which fell from above 0.7300, to trade 0.7175!
Posted on 10 Feb
Collinson FX Market Commentary - Feb 9 - All quiet on US front
The Dollar was steady, with the EUR trading below 1.0700, while the Yen holds around 112.00. A quiet night of trade on equity and currency markets with little economic data releases or action on the Trump front. Trump is still immersed in the immigration ban and pushing for his Cabinet approvals in the Senate. You can't keep a good man down for long so we can expect more fireworks to impact markets.
Posted on 9 Feb
Collinson FX Market Commentary - Feb 8 - No rates move from RBA
The AUD drifted lower to 0.7625, while the NZD consolidated above 0.7300, boosted by a strong inflation report. The RBA left rates unchanged, as expected, leaving the interest rate differential the potential to close on Fed rate rises. The AUD drifted lower to 0.7625, while the NZD consolidated above 0.7300, boosted by a strong inflation report. The NZ Dairy auction also booked marginal gains, allowing the currency some license, on the upside.
Posted on 7 Feb
Collinson FX Market Commentary - Feb 7 - AUD depressed ahead of RBA
The AUD traded around 0.7650, depressed after weak Retail numbers, ahead of the RBA rate decision. The AUD traded around 0.7650, depressed after weak Retail numbers, ahead of the RBA rate decision. The Central Bank has left rates unchanged for months and no action is expected. The NZD tests 0.7300 and is likely to trade on reserve strength with some local Central Bank speculation to drive daily moves.
Posted on 6 Feb
Collinson FX Market Commentary - Feb 4 - Jobs jump in US
Commodity currencies were steady, with the AUD holding 0.7570, while the KIWI pushed 0.7300. Commodity currencies were steady, with the AUD holding 0.7570, while the KIWI pushed 0.7300. The coming week will deliver decisions from the RBA and RBNZ, although expectations are low, for any action. The US is looking at rate rises in the coming year, which will filter through to local trans-Tasman Central Banks, but not until later in the year.
Posted on 6 Feb
Collinson FX Market Commentary - Feb 3 - USD and GBP soften
NZD pushed towards 0.7300, boosted by a weaker reserve, while the AUD stabilised (0.7570) after bullish trade data. The Dollar was not assisted by the Challenger Jobs Report, which reflected a jump in retail job cuts, ahead of the all important Non Farm Payrolls tonight. The NZD continued to push towards 0.7300, boosted by a weaker reserve, while the AUD stabilised (0.7570) after bullish trade data.
Posted on 2 Feb