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Collinson FX Market Commentary - Apr 7-8 - Syrian attack spooks US

by Collinson FX on 10 Apr 2017
Alex Maloney and Molly Meech - 49erFX 035 - Oceanbridge NZL Sailing Regatta - Day 1 Richard Gladwell www.photosport.co.nz
Collinson FX Market Commentary - Apr 7-8 - NZD drops back

US airstrikes on the Syrian airbase, that delivered the Chemical weapons attack on their own people, was an important signal to players in the region. Trump is not willing to allow these red lines to be crossed. This hit equity markets early but US markets recovered to post gains by the close.

The Dollar booked some gains, with the EUR trading 1.0580, while the Yen moved to 111.20. Non Farm Payrolls missed expectations, although the Employment rate dropped from 4.7% to 4.5%, sending mixed signals. German Industrial Production was steady while trade rained positive.

The coming week will be riddled with GeoPolitical events and how they play out in the Middle East and North Korea. A look at US Retail Sales and Inflation will be important economic numbers coming for markets. The NZD will open the week above 0.6900, while the AUD struggles to hold 0.7500.

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Collinson FX Market Commentary - Apr 6 - NZD drops back

EU Services and composite PMI was negative, confirming a long line of weak sentiment, setting markets in a state of flux. The Fed minutes confirmed the unwinding of the extreme monetary policy under Obama/Yellen.

A new regime of growth and inflation is on the way!

The EUR traded 1.0650, while the Yen remained below 111.00. The ADP Jobs reported in the US, confirming strong growth, more on sentiment than action. Commodities remain sure, although the rising reserve is impacting the associated currencies.

The NZD has slipped back to 0.6950, while the AUD attempts to regain 0.7600, in vain.The US needs legislative action to reinforce the Trump economic agenda.

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FX MarketCollinson Commentary - Apr 5 - +ve auction fails to inspire

Markets were steady overnight, with equities posting small gains, along with commodities. The importance of the China-US meeting this week cannot be underestimated. President Trump meets with Chinese President Xi at the summer palace, Mar-a-Lago later this week, defining the relationship which may be the most important internationally.

Trade will be top of the agenda, with rising Geo-Political pressures of the South China Sea and North Korea, conflict points. US Factory Orders and Durable Goods Orders were both positive while markets await action from the administration. The Dollar gained some ground against the Yen, trading 110.50, while the EUR held 1.0650.

The NZ Dairy auction was positive, but failed to inspire the KIWI, which completely surrendered 0.7000. The rising reserve can be blamed, which also assisted the weakening AUD, which fell to 0.7550.

The AUD was impacted by the RBA, which left rates unchanged, despite massive house price pressures. Household debt and soaring house prices may cause alternative action from the RBA but rates cannot be raised due to concerns over growth in an economy transitioning from the mining boom. Loose monetary policy will drive currencies with differentials on the move!


FX MarketCollinson Commentary - Apr 4 - Dow opens on a soft note

The Dow opened the week softer with ISM Manufacturing and PMI data both flat. The coming week will give an insight in to the Feds perception of the US economy with the release of Minutes.

US Employment data will be a strong indicator, driving equities and currencies, with Challenger, ADP and Non Farm Payrolls. The Dollar remained soft, with the EUR trading 1.0650, while the JPY moved below 111.00.

Commodity currencies drifted lower, with the AUD trading 0.7600, while the NZD battled to hold 0.7000. EU Manufacturing PMI was flat and Unemployment remained high and static. Global Trade data releases, this week, will reveal the state of demand for goods and services and underlying support for commodities.

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FX MarketCollinson Commentary - Apr 3 - Looking the week's data

Chinese Manufacturing and Non Manufacturing PMI was steady with no surprises. The Chinese economy has supported commodity demand and propping up the associated currencies despite a rising reserve. The AUD trade 0.7625, while the KIWI attempts to hold the big figure, 0.7000.

The RBA decision in the coming week will give useful insight into the Central Banks view of the Australian economy. There is expected to be enough uncertainty to allow current soft monetary policy to remain.

The US will look to important jobs reports, lead by the ADP and Challenger, followed by the Non Farm Payrolls and the Employment number. There will be a slew of Manufacturing data globally, along with global trade numbers. Attention will remain on the US legislative process and the Trump administrations progress on their click here and here Or for the latest update click here

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