sail-world.com
 
 
News Home Video Gallery Photo Gallery
Sail-World.com : Collinson FX Market Commentary: June 5, 2013 - KIWI drops again
Collinson FX Market Commentary: June 5, 2013 - KIWI drops again


'Georgia One - 2013 Auckland Cup, Day 2'    Richard Gladwell ©    Click Here to view large photo

Collinson FX market Commentary: June 5, 2013

Click here to find out how to get CollinsonFX's free iPhone app

Markets remained inexorably linked to the Fed and the extreme monetary policies now linked to employment and inflation. Equities turned negative after Kansas City Fed President, Esther George, advocated the tapering of QE. Pimco's, Bill Gross, commented that QE was 'more of a problem for the economy that needs structural reform!'

Central Banks are overwhelming market drivers and corrupting Bond markets and thus driving investors in search of yield resulting in bubbles. Debasement of currencies by the ECB, BoJ and the Fed have necessarily driven assets prices north, raising costs as the lack of growth controls inflation. Stagnating growth is inhibiting a rebound in global economic growth and is a direct consequence of these Central Bank policies.

The USD regained some of the previous days losses forcing the EUR back to 1.3050 and the GBP 1.5260. The RBA left rates unchanged but hinted further cuts were in the pipeline if economic conditions continued to deteriorate. The RBA has taken the opportunity to step back after the massive recent correction in the 'A Dollar'.

The inaction sparked an initial rise in the AUD but this was overwhelmed as markets digested the statement and the negative connotations.

The rise in the 'Dollar' added to the momentum pushing the AUD back towards 0.9600 and the KIWI back below 0.8000. Listen to Central bankers for trading direction and economic data for the underlying message.

Wired - 2013 Auckland Cup, Day 2 -  Richard Gladwell_©   Click Here to view large photo

Collinson FX market Commentary: June 4, 2013

When Bonds and Stocks both sell-off you tend to find bad news is bad on the economic fundamental front. We are still experiencing the the irony of 'bad news is good!' due to the corruption of markets by Bernanke and Co.

The ISM Manufacturing contracted at the worst rate in four years, falling below 50, to 49 showing Manufacturing is struggling. Construction was positve but was lower than expected and the weak data resulted in a risk-off trade with a fall in the Dollar. The EUR rose to 1.3080 and the GBP jumped to 1.5335 with steady Manufacturing PMI across Europe.

The AUD was a major beneficiary of the slide in the USD, rallying strongly to 0.9775 and the KIWI breaking back to 0.8100.In Asian trade yesterday the AUD had taken a pasting, after Chinese Manufacturing PMI contracted back to 49.2, falling below 0.9600 and the NZD dropped to 0.7950.

Fear was spreading after the massive equity/bond sell-off Friday in the US, but was arrested when markets decided the bad news would result in a further continuance of QE.

The AUD remains extremely vulnerable as a global risk target aggravated by the rise in weak local economic data and the political turmoil created by the mortally wounded, and soon to be gone, Labor regime!

Look to the plethora of US data and Central Banks for market direction to be manifested in Bonds, Stocks and Currencies!

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.


by Collinson FX

  

Click on the FB Like link to post this story to your FB wall

http://www.sail-world.com/index.cfm?nid=110191

1:11 PM Wed 5 Jun 2013GMT


Click here for printer friendly version
Click here to send us feedback or comments about this story.

Click for further information on
2011 Collinson & Co

Related News Stories:

06 Jun 2013  Collinson FX Market Commentary: June 6, 2013 - AUD crashes, KIWI down
04 Jun 2013  Collinson FX Market Commentary: June 4, 2013 - AUD vulnerable
02 Jun 2013  Collinson FX Market Commentary: June 1, 2013 - Backwards and forwards
01 Jun 2013  Collinson FX Market Commentary: May 31, 2013 - Riding a rollercoaster
30 May 2013  Collinson FX Market Commentary: May 30, 2013 - Bulls retreat
29 May 2013  Collinson FX Market Commentary: May 29, 2013 - Bulls run on good data
28 May 2013  Collinson FX Market Commentary: May 28, 2013 - US and EUR on holiday
24 May 2013  Collinson FX Market Commentary: May 24, 2013 - AUD and NZD steady
23 May 2013  Collinson FX Market Commentary: May 23, 2013 - USD up - all else falls
22 May 2013  Collinson FX Market Commentary: May 22, 2013 - Recovery for ANZAC?
MORE STORIES ...




News - USA and the World



















Team GBR’s Sparky on the Road to Rio (Part Two) *Feature by Rob Kothe and the Sail-World Team,


















Team GBR on the Road to Rio (Part One) by Rob Kothe and the Sail-World team,






























Will late spring thaw spell trouble for boaters?
Byte CII Worlds and YOG Continental Qualifier at Riva del Garda
ISAF Sailing World Cup Hyères - Battle continues for U.S. sailors
ISAF Sailing World Cup Hyeres - Qualification stage comes to a close
ISAF Sailing World Cup Hyeres - Day 2 images by Franck Socha
ISAF SWC Hyeres - Nacra Silver medal debutantes continue to improve
Antigua Classic Yacht Regatta - Cheers on the dock
Spindrift 2 criss-crosses the Bay of Biscay
45th anniversary of Sir Robin Knox-Johnston's record circumnavigation
ISAF Sailing World Cup Hyeres - Sailors tweet about opening day
49er Blog: Glorious racing to kick start Hyeres World Cup
Clipper Round the World Yacht Race - Continuous close racing
ISAF Sailing World Cup Hyères - Fluttering flags whet sailors appetite
Antigua Classic Yacht Regatta - Race 4 images by Jude Robertson
ISAF Sailing World Cup Hyeres - US Sailing Team Sperry Top-Sider Day 1
ISAF Sailing World Cup Hyeres - Day 1 Nacra 17 images by Thom Touw
ISAF Sailing World Cup Hyeres - Day 1 Laser images by Thom Touw
ISAF Sailing World Cup Hyeres: Ioannis Mitakis leads Finns after day 1
RC44 Cascais Cup - Fresh faces join the line-up
ISAF Sailing World Cup Hyeres - Excellent racing on opening day
ISAF Sailing World Cup Hyeres - Images by Yvan Zedda and Franck Socha   
ISAF Sailing World Cup Hyeres - Day 1 images by Franck Socha   
Hyeres World Cup: Kiwis lead but Outteridge Jensen back in 49er fray   
Belcher and Ryan lead from the start in Hyeres   
ISAF Sailing World Cup Hyères - Race day 1 ready for lift off   
Clipper Round the World Race 11 - Tense match downwind racing on Day 2   
Antigua Classic Yacht Regatta - Day 3 an absolute gem   
Quantum Key West 2015 dates confirmed   
Flying Tigers 'Psych' - on Lake Lanier they pronounce it Zhik   
ISAF Sailing World Cup Hyeres: Anticipation intensifies as start nears   
Clipper Round the World Race - Race 11 start images by Chuck Lantz   
27th Antigua Classic Yacht Regatta 2014 - Big breeze on the butterfly   
Rolex China Sea Race 2014 - Pryde and Joy for Hi Fi   
Clipper Round The World Race - A flying start on Day 1 of Race 11   
Cammas on Caudrelier – different styles, same objective   
Clipper Race - Californian crew member continues fundraising journey   
Antigua Classic Yacht Regatta - Race 2 images by Jude Robertson   
Les Voiles de St Barth - Images by Christophe Jouany   
Clipper Round the World Yacht Race - Fleet sets sail in race 11   
Congressional Cup - Canfield and Team US One best star-studded field   


For this week's complete news stories select    Last 7 Days
   Search All News
For last month's complete news stories select    Last 30 Days
   Archive News





Sail-World.com  


















Switch Default Region to:

Social Media

Asia

Australia

Canada

Europe

New Zealand

United Kingdom


http://www.sail-world.com/event_images/image/Twitter_logo_small.png http://www.sail-world.com/event_images/image/FaceBook-icon.png  http://www.sail-world.com/event_images/image/RSS-Icon.png

United States

Cruising Northern

Cruising Southern

MarineBusiness World

PowerBoat World

FishingBoating World

 

Contact

Commercial

News

Search

Contact Us

Advertisers Information

Submit news/events

Search Stories/Text

Feedback

Advertisers Directory

Newsletter Archive

Photo Gallery

 

Banner Advertising Details

Newsletter Subscribe

Video Gallery

Policies

 

 

 

Privacy Policy

 

 


Cookie Policy

 

 



This site and its contents are © Copyright TetraMedia and/or the original author, photographer etc. All Rights Reserved.  Photographs are copyright by law.  If you wish to use or buy a photograph contact the photographer directly.
X6XL NEW US