sail-world.com
 
 
News Home Video Gallery Photo Gallery
Sail-World.com : Collinson FX Market Commentary: May 8, 2013 - RBA cuts to 1959/60 rate
Collinson FX Market Commentary: May 8, 2013 - RBA cuts to 1959/60 rate


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

Collinson FX market Commentary: May 8, 2013

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

The RBA joined the 'currency wars' yesterday as they cut rates to the lowest levels since 1959/60. These record lows may not be the end, as the powder remains dry, and the Governor remains ready and able to cut further. The economy is showing signs of distress as the Australian position has deteriorated in the last year after surviving the GFC relatively well.

The strong Fiscal and Monetary position the economy was in prior to the GFC had allowed the Ozzies to weather the storm but the Global paradigm has changed and the Labor Socialist Government have carried Keynsian theory a bit too far. The have stretched the tenure of stimulus beyond comprehension.

They have borrowed to replace revenue (but never lost the revenue) and have exhausted the all reserves and piled up a AUD$300 Billion debt! When your revenues continue to increase but your expenditures exceedRBA cuts to lowest x these, then fiscal incompetence is to blame. The RBA has acted to counter the 'currency wars' with the AUD stubbornly holding above parity for an extended period destroying trade competitiveness.

The Fed has added $2.3 Trillion to the Balance sheet since 2008 and the ECB have similar excess. The BoJ had recently joined the party and the RBA had had enough. Ironically the poor economic conditions, that have triggered these actions, have been the cause of bubbles with no better example than world equity markets. The DOW has now blasted through the 15,000 mark and with $85 Billion added every month by the Fed, liquidity is the problem!

The EUR hit 1.3080 as the GBP slipped below 1.5500. The Big Dollar is being fundamentally undermined by Bernanke, thus the impact of the RBA's 0.25% cut was minimal, falling to 1.0175. The KIWI was dragged back under the 0.8500 mark. It is very difficult to fight against Central Banks and bubbles created will cause much greater problems anon!

Surething - 2013 Auckland Cup, Day 3 -  Richard Gladwell_©   Click Here to view large photo

Collinson FX market Commentary: May 7, 2013

Equity markets were steady after the substantial gains of last week boosted by an ECB rate cut and a better than expected Non-Farm Payrolls. European markets absorbed steady PMI numbers but falling ECB Retail Sales.

The endless recession spurred Draghi back to the microphone where he promised to take whatever action necessary to right the ship.

The immediate impact was felt in the currency with the EUR falling back to 1.3075. The US markets were steady with the DOW hitting 15,000 on Friday but failing to hold and has now set a benchmark. There was little local news but plenty to come, plus add in the developing situation spreading war across the Middle East! The AUD slipped lower to 1.0250 in preparation for an expected cut from the RBA this week.

Australian Retail Sales contracted and Job Advertisements also fell 1.3%. Economic fundamentals have been deteriorating in Australia for some time and now they are amidst the 'longest election campaign in History', expect unprecedented volitility.

The KIWI held 0.8500 and continues to book gains against its trans-Tasman cousin. Testing times on the Geo-Political front with economic fundamentals hardly inspirational.

Elliott 5.9 - 2013 Auckland Cup, Day 2 -  Richard Gladwell_©   Click Here to view large photo

Collinson FX market Commentary: May 6, 2013
Non-Farm Payrolls came in better than expected fueling the rally in equities. The Dow has now toyed with the 15,000 level and the endless rally continues with no likelihood of Bernanke turning off the liquidity taps. This boosted the EUR which moved back to 1.3115 and the GBP to 1.5565.

Risk appetite continues to flourish boosting associated higher yielding currencies. The AUD breached 1.0300 and the KIWI moved over 0.8500 once again. The rally has been sustained by concerted Central Bank intervention and seems likely to continue until fundamentals tip the balance and cause reality to crash the party. Non-Farm Payrolls gained 165,000 with Unemployment falling to 7.5%.

The good news supported the markets despite Factory Orders falling 4%.

The new week will bring more economic data analysis and perhaps consideration of an interest rate cut in Australia. This is May!?

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=109300

9:01 PM Tue 7 May 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:

09 May 2013  Collinson FX Market Commentary: May 9, 2013 - Oz down KIWI up
07 May 2013  Collinson FX Market Commentary: May 7, 2013 - KIWI catching up
06 May 2013  Collinson FX Market Commentary: May 6, 2013 - Oz interest rate cut?
03 May 2013  Collinson FX Market Commentary: May 3, 2013 - Bulls on the handlebars
02 May 2013  Collinson FX Market Commentary: May 2, 2013 - Unimpressive largesse
01 May 2013  Collinson FX Market Commentary: May 1, 2013 - KIWI in for a caning?
01 May 2013  Collinson FX Market Commentary: April 30, 2013 - Euro defies gravity
29 Apr 2013  Collinson FX Market Commentary: April 29, 2013 - KIWI market darling
27 Apr 2013  Collinson FX Market Commentary: April 26, 2013 - Poms avoid a bath
24 Apr 2013  Collinson FX Market Commentary: April 24, 2013 - Twitter hack strikes
MORE STORIES ...




News - USA and the World













HUD Vision: An interview with Afterguard Marine’s Alex Moret *Feature by David Schmidt, Sail-World USA Editor, Seattle














America's Cup: Expected de Ridder penalty should be reduced *Feature by Richard Gladwell/Sail-World.com/nz, Auckland, NZ
















Congressional Cup - Victory for Taylor Canfield and crew by Rich Roberts (As Amended by ISAF),




2014 Halifax – Saint-Pierre Ocean Race by Patricia Nelder, Nova Scotia














Image Gallery: Stratis SL33 flies on the Waitemata by Richard Gladwell,Sail-world.com/nz,


Audi Melges 20- Sperry Topsider Charleston Race Week - Light final day by International Audi Melges 20 Class Association,




ISAF Sailing World Cup Hyères - Crème of the crop to compete
Congressional Cup: Luna Rossa makes podium in first event
Int 14 World Championships 2015 launch new event website
International Optimist Regatta Clinic and Team Race - Register now!
Congressional Cup: World top rankers finish that way in Long Beach
Sperry Top-Sider Charleston Race Week Day 3 finale
America's Cup: Gino Morrelli outlines the new AC62 design
Doyle Sails New Zealand signs Andrew Brown as One Design Manager
America's Cup: Dean Barker's Blog - A sail with the Duke and Duchess *Feature
29er World Youth Sailing Week Easter regatta - Day 1 and 2 overall
C Thomas Clagett Jr Memorial Clinic/Regatta - Entries start to roll in
50th Congressional Cup: See the delayed coverage and media conferences
Clipper Race 10 Day 27: Closing stages - Qingdao to San Francisco
Canfield, Williams, Bruni, Swinton in Congressional Cup final four
Sperry Top-Sider Charleston Race Week - Day 2
Audi Melges 20 Charleston Race Week - Perfect conditions in Charleston
Oyster Regatta Antigua - Full on ocean conditions for day 3
PWA World Tour - A taste of things to come at La Torche + Video
Women's International Match Racing Series kicks off in June
Melges 32 Audi Tron Sailing Series - Action shots by Max Ranchi
Clipper Round the World Yacht Race - Frustrating conditions   
Man rescued after falling overboard in Pacific taken to hospital   
Sperry Top-Sider Charleston Race Week 2014 - Youth leading Melges 20   
Congressional Cup - Canfield leads toward Congressional Cup sailoffs   
Sperry Top-Sider Charleston Race Week 2014 - Perfection for Day 1   
America's Cup: Coutts claims ISAF Jury on a crusade, backs Kiwi report *Feature   
Clipper Round the World Yacht Race - Will light winds hamper progress?   
Les Voiles de St. Barth - Preparing to rock Saint Barthélemy waters   
Clipper Round the World Race - OneDLL and Qingdao now in San Francisco   
America's Cup: Emirates Team NZ up against funding hurdle for year *Feature   
Melges 32 Sailing Series Napoli - Day 1 images by Stefano Gattini   
50th Congressional Cup: View the Live racing here   
Melges 32 Sailing Series - Napoli action shots by Max Ranchi   
Volvo Ocean Race - Team Alvimedica launch new boat   
Emirates Team NZ: Royals duke it out on the Waitemata   
2014 Charleston Race Week - Thousands of sailors descend on Charleston   
The Congressional Cup 2014 - Williams hangs on with a classy crowd   
50th Congressional Cup: View the Live racing here   
RORC Transatlantic Race - Notice of Race now available   
Oyster Regatta Antigua - Sunshine and smiles on day 2   


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.
XL NEW US