Please select your home edition
Edition
Collinson and Co

Collinson FX Market Commentary- September 18, 2012 - KIWI at 0.8250

by Collinson FX on 18 Sep 2012
Image of the day Oracle Team USA sailing the AC72 - USA-17 on Day 2, September 17, 2012 AC72 Guilain Grenier Oracle Team USA © http://www.oracleteamusamedia.com/

Collinson FX market Commentary: September 18 2012

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

The fallout from QE3 remains with the equity markets showing risk appetite.

The positive news from the equity markets are not reflected in our quantum which we call reality. The deficits remain crippling and debt levels have reached tipping point, so why have the markets decided to invest in equities. Bernanke has decided that corrupted Keynesian economics will keep his job as he pins his hopes on the biggest spending President of all time!

The world needs a quantum shift and address the welfare/beneficiary system robbing productive society to support largesse.

The EUR moved to 1.3100 after all the Central Bank corruption of the Dollar and the GBP moved to 1.6250. Commodities have found support with the reserve currency demise although the AUD struggles at 1.0465.

Questions must be asked as to the relative weakness despite the concerted effort to undermine the reserve currency.

The KIWI trades 0.8250 and shows some support though fundamentals point to a terrible readjustment.

Re-election of the Obama democratic regime could spell the end of western capitalism and with it the hopes of future generations!


Collinson FX market Commentary: September 17 2012

Equities continued to rally on the back of Bernanke's nuclear option. The release of the new QE3 allowing the Fed to buy $40 Billion/month for eternity has sent equity markets into a buying frenzy crashing through technical tops.

The overhwelming response is natural considering the promise of an endless supply of cheap money. The rally continued with some positive data assisting markets. University of Michigan Consumer Sentiment rose as did Retail Sales endorcing the rise in risk sentiment. Egan-Jones downgraded the US from AA to AA- but this failed to raise any fears. Manufacturing and Industrial Production in the US both slipped confirming the state of the US economy and exemplifying the reason for central bank interference.

The USD has been understandably trashed as the Fed washes away the value of the once mighty Dollar. The EUR rallied to 1.3115 and the GBP 1.6215. Rumours abound that a pending EU$300 Billion bailout of Spain is being considered by the Troika. The EC,ECB and the IMF would not discourage the bailout considering the contingency mechanisms they now have in place.

Commodities rallied as the USD faultered boosting the AUD to 1.0540 and the NZD to 0.8275. This week will closely monitor activity in the Eurozone with US economic data featuring Housing and Manufacturing.


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 24 - Trump turns down volume
The weaker reserve aided the bounce in the KIWI, which jumped to 0.7225, while the AUD regained 0.7700. The Treasury Secretary, Mnuchin, made observations overnight regarding tax that did unsettle the Dollar. Mnuchin questioned the 'border tax' and pointed out tax cuts, expected before August, would not flow through to the economy until 2018.
Posted on 23 Feb
Collinson FX Market Commentary - Feb 22 - US Dollar resumes rally
The rising reserve has kept the AUD below 0.7700, while the NZD has drifted back to 0.7150. The Dollar resumed the Trump rally, with the EUR falling to 1.0550, while the Yen traded 113.50. Commodities have fared well, although the rising reserve has kept the AUD below 0.7700, while the NZD has drifted back to 0.7150. NZ Dairy Prices were weak and assisted the NZRB's dialogue, in terms of currency, although the story remains the US Dollar.
Posted on 22 Feb
Collinson FX Market Commentary - Feb 21 - Pence steadies Europe
The AUD remained below 0.7700, while the NZD drifted below 0.7200, looking for support from the Dairy Auction. US equities settled in a quiet open to a holiday weekend. The Dollar was also steady, with the EUR trading 1.0600, while the Yen held above 113.00. The AUD remained below 0.7700, while the NZD drifted below 0.7200, looking for support from the Dairy Auction.
Posted on 20 Feb
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