Please select your home edition
Edition
Collinson and Co

Collinson FX Market Commentary- August 14 2014 - Aussie confidence up

by Collinson FX on 15 Aug 2014
Mark rounding - RNZYS Winter Series, August 2, 2014 © Richard Gladwell www.photosport.co.nz
Collinson FX market Commentary: August 14, 2014

http://itunes.apple.com/app/collinsonfx/id533360650?mt=8!Click_here to find out how to get CollinsonFX's free iPhone app

Equities surged again overnight, with Retail Sales stagnating, giving cover to the Fed to defer any considered interest rate rises. Inflation and growth may have suggested an end to QE Infinity and a tightening monetary policy, but a fall in consumer demand, will provide cover for Yellens natural dovish instincts.

The Dollar was steady, with the EUR trading 1.3360, while the GBP slipped below 1.6700 despite dovish statements from the Bank of England.

Australian Consumer Confidence jumped 3.8%, reversing recent trends on the economic front, giving support to the local currency which rose to test 0.9300. The KIWI was quiet and holding around 0.8450.


Collinson FX market Commentary: August 13, 2014
Stocks retraced any gains with little on the economic front to support the bull markets. The Dollar remained an attractive target with the EUR 1.3370 and the GBP 1.6815.

Economic developments were few and far between and the Geo-political concerns dissipated allowing some confidence to return. The Russians bide their time while awaiting the opportunity for further developments globally to shadow their humanitarian invasion.

The NZD remained bid with the interest rate differential remaining attractive around 0.8440. Australian business confidence rose as did house prices but this did little to assist the currency with the AUD 0.9275.


Collinson FX market Commentary: August 12, 2014

The rebound in equities continued to begin the new week amongst light economic data releases. With little to drive the markets on the economic front Geo-Political issues become front and center.

The Dollar stabilized, with threats on multiple fronts, the EUR trading 1.3385 and the GBP 1.6790.

NZ Credit Card spending was dead, which is a further reflection of the impact Monetary Policy is having on the economy.

The KIWI remains supported by interest rate differentials trading 0.8450 while the AUD drifted back to 0.9260.

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.

Collinson and Co

Related Articles

Collinson FX Market Commentary - Sept 23 - USD continues to sag
NZD clings on to 0.7300. The AUD has pushed above 0.7650, but drifted in late trading, despite a weakening Dollar. The ECB and RBNZ continued the inaction of the Fed and the Bank of Japan. The RBNZ has left rates unchanged and seemed content with local economic conditions. The Jaw-boning of the currency continued, but to no avail, as the currency holds around 0.7300.
Posted on 24 Sep
Collinson FX Market Commentary - Aug 10 - NZD does a weird rally
he AUD breaching 0.7700, while the NZD moves towards 0.7200. The NZD is rallying ahead of the RBNZ interest rate decision which confounds many as a cut in interest rates is expected. The rate is expected to be cut by to 2%, but this may be too little, too late. The RBA cut rates and the currency has rebounded strongly as interest differentials still prove attractive.
Posted on 11 Aug
Collinson FX Market Commentary - June 11 - A Canary in the Mineshaft
Commodity currency gains were undermined on Fridays trade, AUD falling back to 0.7380, while the NZD fell to 0.7050! The RBNZ had a bad case of inertia, fuelling rallies in the currency, but the macro picture remains the underlying power. Take note of global bond markets, which are the canary in the mineshaft, with 10 year Bond around zero and the 10 year Japanese bond negative!
Posted on 11 Jun
Collinson FX Market Commentary - June 10 - Kiwi in hot pursuit of AUD
The RBNZ left rates unchanged with an ease bias remaining. The KIWI surged on the news, to record highs for the year The NZD jumped a big figure on the news, to trade 0.7130, consolidating in global markets overnight. There were gains against most of the cross rates, while the AUD managed to trade 0.7440, only incremental higher.
Posted on 11 Jun
Collinson FX Market Commentary - June 9 - Kiwi chasing down AUD
The AUD pushed up to 0.7470, while the NZD broke above the big, big figure of 0.7000! The KIWI moved north despite weaker local manufacturing data and ahead of the RBNZ rate decision. The Central Bank will be sorely tempted to combat the rising currency with rate cuts, but will probably rely on rhetoric and the forlorn hope of a US rate hike.
Posted on 10 Jun
Collinson FX Market Commentary - June 8 - Antipodean storm surge
The NZD has also been dragged along by antipodean confidence, moving to 0.6950, encouraged by a falling reserve. The RBA left rates unchanged, despite temptation, with a neutral bias. The surging currency, rising to 0.7450, is being put in the hands of a Fed rate rise. The NZD has also been dragged along by antipodean confidence, moving to 0.6950, encouraged by a falling reserve.
Posted on 8 Jun
Collinson FX Market Commentary - June 4 - Low jobs cripples USD
AUD spiked to 0.7360, while the NZD hit 0.6950! Non Farm Payroll added 38,000 jobs, which is the worst in more than 5 years, but the Unemployment number fell to 4.7%!? The commodity currencies took full advantage of the crippled Dollar, with the AUD spiking to 0.7360, while the NZD hit 0.6950!
Posted on 6 Jun
Collinson FX Market Commentary - June 2 - AUD give up gains
The AUD gave up much of the previous days gains, falling to 0.7220, after falling Retail Sales contradicted GDP numbers The AUD gave up much of the previous days gains, falling to 0.7220, after falling Retail Sales contradicted GDP numbers. The NZD tested 0.6800, on the downside, hit by negative sentiment rather than any economic event. All eyes remain on the Non Farm Payrolls in the US tonight.
Posted on 2 Jun
Collinson FX Market Commentary - June 1 - AUD regains some mojo
The AUD regained some mojo, pushing back to 0.7225, after a jump in export data. The NZD surged towards 0.6750, after a jump in Building Permits, but little should be read into housing data. The Australian story is more positive but it is all relative! It is performing better than most other OECD countries, but has serious fiscal and monetary issues, due to political incompetence.
Posted on 2 Jun
Collinson FX Market Commentary - May 31 - All quiet on Memorial Day
Markets were quiet, as the US celebrated the Memorial Day holiday, taking a long weekend along with the UK. Commodity currencies traded in a range, with the NZD testing 0.6700, while the AUD failed to regain 0.7200. Further rate cuts by the RBA or RBNZ seem unlikely considering the pending threats to raise rates by the Fed. Central Banks remain the major driver of equity and currency markets, although economic data will influence daily moves, as will be seen for the remainder of the week.
Posted on 31 May