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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.richardgladwell.com
Collinson FX market Commentary: August 14, 2014

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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.

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