sail-world.com
 
 
News Home Cruising Photo Gallery Video 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

Sail-World 2.0 - the Beta version- Please take a look by Rob Kothe and the Sail-World team,


America's Cup: Team NZ wish Davis well with new team by Richard Gladwell, Sail-world.com/nz,


Volvo Ocean Race 2014-15 CEO Knut Frostad talks (Part I) *Feature by Rob Kothe and the Sail-World team,


Fisher's View: Sailing perfection at Hamilton Island- Day 3 by Bob Fisher, Hamilton Island, Queensland






2014 Formula Kite World Championship Day 1 by Markus Schwendtner, Istanbul
























Opera House Cup - Images by Ingrid Abery by Ingrid Abery/Sail-World.com,


Teams descend upon Cowes for inaugural J/111 World Championships by Stuart Johnstone, Cowes, Isle of Wight, England




























2014 Nanjing Youth Olympic Games trailer
2014 Chicago Grand Slam - Canfield wins
Round Britain and Ireland Race - Varuna takes overall lead
Audi Hamilton Island Race Week; Crosbie Lorimer Day 1 Images
Fisher's View: Hamilton Island Race Week - Day 1 - Stayin' Alive
CORK Olympic Classes Regatta 2014 - Day one
Youth Olympics: practice over, athletes welcomed, time for YOG sailing
Round Britain and Ireland Race - Record for Artemis-Team Endeavour
2014 Melges 32 U.S. National Championship - Day 2
Sevenstar Round Britain and Ireland: Artemis sets fourth course record
2014 Chicago Grand Slam - Top seeds survive as semi-finalists
420 and 470 Junior Europeans - Breezy day 4 in Gdynia
RC44 World Championship - Dramatic improvement for Artemis Racing
18' Skiff International Regatta - Action begins August 25th
Round Britain and Ireland Race - Challenging conditions arise
Round Britain and Ireland Race - Record-breaking monohull victory
Round Britain and Ireland Race - Dongfeng Race Team finishes third
RC44 Marstrand World Championship - Bronenosec the star performer
Bahamian Olympic Sailor to carry flag in honour of Sir Durward Knowles
Sevenstar Round Britain and Ireland Race: Records continue to tumble
Sevenstar Round Britain and Ireland Race: Course Record for Team SCA   
Round Britain and Ireland Race - Team Alvimedica completes the race   
2014 Melges 32 U.S. National Championship - Day 1   
420 and 470 Junior European Championships - A crazy race day 3   
2014 Sevenstar Round Britain and Ireland Race: Monohull record smashed   
2014 Chicago Grand Slam - Top seeds take the early lead   
Frostad proud to have seven Volvo Ocean Race boats with seven sponsors *Feature   
RC44 World Championship - Bronenosec Sailing Team on form   
Round Britain and Ireland Race - Dongfeng defends third position   
Volvo Ocean Race: Team Vestas Wind emerges into the sunlight   
Volvo Ocean Race: Round Britain on board Team SCA with the   
Volvo Ocean Race: Round Britain on board Azzam and Team Campos   
Sevenstar Round Britain and Ireland Race - Twist of fate on day 5   
Mallorca’s Puerto Portals to host the 2015 TP52 World Championship   
Volvo Ocean Race: Round Britain on board with Team Alvimedica   
Volvo Ocean Race: Round Britain with on board with Team Dongfeng   
Melges 32 U.S. National Championship 2014 - Teams ready for action   
USA Match Racing Grand Slam Series - Kicks off in Chicago   
U.S. Youth Championships - Climactic finish on Lake St. Clair   
Nanjing 2014 Youth Olympic Games - Lake Jinniu action on the horizon   


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.
XLXL NEW US
LocalAds   DE  ES  FR  IT