Please select your home edition
Edition
SW newsletters (top)




Collinson FX: August 5, 2020 - Victorian lockdown expected to have a ‘major impact'

by Collinson FX 4 Aug 2020 21:39 PDT 5 August 2020
- Mahurangi Regatta - January 2020 - Mahurangi Harbour © Richard Gladwell / Sail-World.com

Collinson FX: August 5, 2020 - Global equities climb

Global equities continued to climb, supported by the absolute ocean of monetary and fiscal stimulus, plus stronger Manufacturing data in Europe, Asia and the USA. US Factory Orders expanded 6.2% and earnings have been strong in both Europe and the USA, except for a growing concern in the banking sector. Banks are reporting massive expansions of bad debt provisions, signaling some testing times ahead. The EUR was steady, trading 1.1780, while the GBP drifted back to 1.3050.

The RBA left rates unchanged, but the associated commentary allowed some confidence to boost markets. The RBA Governor said that the economic downturn was not as severe as originally feared, but warned the Victorian lockdown, starting tonight, was having a ‘major impact’. Australian Retail Sales improved 2.7%, while trade numbers were depressed, but moving upwards. The AUD reacted well overnight, with the AUD trading up to 0.7150, while the NZD tests 0.6600 on the downside.

The RBA has indicated that they will enter the secondary market to purchase Government debt, which is a dangerous development in monetary policy, while NZ Unemployment data may impact local markets.

Collinson FX: August 4, 2020 - US to react against Chinese software data gathering companies

Global equity markets surged to open trading in August, boosted by stronger than expected Manufacturing , in Europe and the USA. The pandemic is experiencing a serious second wave across Europe, Australia and the USA. This has resulted in an extension and increase of lock-down restrictions in Melbourne, Victoria, in an attempt to get the infection rates under control. The restriction will negatively impact Victoria and Australia’s recovery.

Tension between the USA and China continue to rise, with Secretary Pompeo confirming the President will act against data gathering Chinese software companies operating in the USA. The rising tensions between the global super-powers will impact global trade and the existing supply chain. The Dollar found some support, with the EUR drifting back to 1.1750, while the Yen moved back to 106.00.

The coronavirus situation is not helping the Australian economy and the AUD fell back towards 0.7100, while the NZD looks to test 0.6600. The pandemic and the Chinese Geo-Political situations are serious threats to the global economic recovery, but markets continue to benefit the monetary largesse.

Catch the new look Collinson FX website at www.collinsonco.com

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

Countries: | NZ: 0800 338 838 | AU: 1800 143 415 | NY: 1888 6257 833 | UK: 0800 0285 834 |

Related Articles

Collinson FX: Dec 29 - More helicopter money
The helicopter money is coming thick and fast. Markets appreciated the fiscal stimulus The helicopter money is coming thick and fast. Markets appreciated the fiscal stimulus and equities rallied strongly. Posted on 28 Dec 2020
Collinson FX: Dec 3 - Australia on improve
Australian GDP jumped more than expected, 3.3% for the quarter and reduced the annualised contractio Australian GDP jumped more than expected, 3.3% for the quarter and reduced the annualised contraction to 3.8%. Posted on 3 Dec 2020
Collinson FX: Vaccine Rally stalls
Growth will continue to be challenged, as the recent European lock-downs, feed through to the data Growth will continue to be challenged, as the recent European lock-downs, feed through to the economic data. Posted on 18 Nov 2020
Collinson FX: Oct 19 - Election win anticipated
The election victory was anticipated by markets, but the magnitude of the victory was not. Labour won the NZ election in a landslide. The victory was anticipated by markets, but the magnitude of the victory was not. Posted on 19 Oct 2020
Collinson FX: Oct 14 - Drop expected post-Election
NZ House prices surged, due to lack of supply and cheap mortgages. Credit card spending surges NZ House prices surged, due to lack of supply and cheap mortgages, leading to a surge in credit card spending. The local election on Saturday should provide further downward pressures coming to bear. Posted on 14 Oct 2020
Collinson FX: Oct 6 - Oz tax cuts expected sooner
Australia is expected to bring forward tax cuts and other stimulus measures Equities opened the week strongly, after the shock hospitalisation of President Trump, last week and his subsequent recovery Posted on 6 Oct 2020
Collinson FX: Sept 18 - NZ in deep recession
NZ GDP data contracted 12.2% for the quarter, better than expected but confirming a deep recession. The Fed also assured markets that interest rates would remain at historical low levels, for years to come, encouraging investors. NZ GDP data contracted 12.2% for the quarter, better than expected but confirming a deep recession. Posted on 18 Sep 2020
Collinson FX: Sept 4 - US markets blow out
Australian trade data revealed a sharp increase in imports, accentuating a trade imbalance US Equity markets experienced a ‘blowout correction' overnight, lead by a crash in ‘stay-at-home' tech shares. This may a bit of a flash in the pan or, if extended, may become a significant market correction. Posted on 4 Sep 2020
Collinson FX: August 20 - China US election issue
The AUD fell back below 0.7200, while the NZD traded 0.6570, both being impacted by lock downs Maersk, the largest shipping company in the world, reported much better than expected earnings. This is a great sign for global trade, as the economic recovery progresses forward. Posted on 20 Aug 2020
MBW newsletters (top)