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Collinson FX Market Commentary- October 7, 2014 - ANZACs rise

by Collinson FX on 7 Oct 2014
- 2014 North Sails Young 88 Owner/Driver National Championship Richard Gladwell www.photosport.co.nz
Collinson FX market Commentary: October7, 2014

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Equity markets were quiet to open the week in the US, while Europe and Asia caught up on Fridays rally, to close the week in the States. The Dollar also settled after an extended rally over the last couple of months.

The EUR rebounded to 1.2600 while the GBP hit 1.6040. Commodities also saw the benefit of a weakening reserve which, in turn, boosted the associated currencies.

The AUD rose to 0.8670 despite weak Job advertisement data. The NZD is testing 0.7800 supported by continued strong house price data. Extreme pressure on commodities and currencies will continue as QE concludes and the prospects of a return from Bonds begin to impact.

The interest rate differential will support a rebound in the KIWI, via the carry trade, while the new National Government unveils its economic strategy for the new term.

The RBA expected to leave rates unchanged, so markets will be focused on the 'language' , especially in relation to the growing housing bubble in Sydney and Melbourne.

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