Posts Tagged: RBA

The effects of the economic problems around the world can be seen in the latest evolution of the Australian Dollar. The problems around the world have caused all economies to weaken due to the decrease in demand and to the concerns of investors. The Australian Dollar has ended a week of losses against most of its major counterparts, especially the US Dollar and the Euro. This is both due to the negative fundamentals Australia is faced with at the moment and to the decision taken by the Australian Central Bank of cutting the value of the interest rates.

It is important to know that the Australian Dollar is very much dependant on the way in which commodities perform due to the fact that Australia’s economy is based especially on exports. The fact is that commodities are under a lot of pressure at the moment due to numerous negative factors around the world. One of the main issues is Read more »

The Canadian Dollar has lost territory today as the International Monetary Fund decided to cut its growth forecast for Canada. This has determined investors to be less interested in growth-related currencies. The IMF has revised its opinion concerning the growth estimation for Canada, decreasing from the 2.9 percent forecast in June to only 2.1 percent. This outlook has become worse due to the slower global economic growth and to the faltering economic recovery of the United States, which is the most important trading partner of Canada. Also, the downgrade of the Italian credit rating by Standard & Poor’s has had a negative influence upon traders. Mark Carney, the Governor of the Bank of Canada, was concerned about the economy of the United States, declaring the following: “The United States is in the midst of the weakest recovery since the Great Depression, and the bank does not expect that to change at any time soon.” He has also brought Read more »

The Great Britain Pound showed an increase against all its major counterparts today based on the release of the report which indicates the fact that the consumer prices in the United Kingdom have grown more than it has been forecasted. On the other hand, the annual inflation report which has been released by the government indicates the fact that the value of the inflation has increased by 0.2 percent, going up from the value of 4.2 percent which has been registered in June to the one of 4.4 percent in the month of July. This comes as a surprise as well, as the medium forecast has been that of 4.3 percent. In his letter to George Osborne, the Chancellor of the Exchequer, the Governor of the Bank of England, Mervyn King, stated that he believes that the inflation rate will soon slow down, descending below the target established by the bank, that of 2 percent, based on the Read more »

Although it was expected for the RBA to take the decision of increasing its interest rates, it seems that the slowdown in the global economic growth has persuaded the Australian policy makers to maintain the value of the interest rates to the actual level, that of 4.75 percent. By maintaining this outlook which is neutral, the RBA is actually protecting the national economy against a potential risk rising from the problems occurred in the European Union and in the United States, which are also likely to influence the evolution in China, which is now faced with a mild slowdown. While announcing the decision of not increasing the interest rates, the officials from the Bank of Australia have also added that it is “not clear how persistent slower growth will be”.

The Central Bank of Australia emphasized the fact that it is likely for the GDP report to show figures which are to be in line with the previous Read more »

Asian Stock markets are going flat today. NIKKEI started the day at 9,959.39, previous close was 9,965.09. HANG SENG opened at 22,803.04, previous close was 22,770.47. After touching 10.000 yesterday for the first time in two months, the market participants think that the market is overbought. General Manager at SMBC Nikko Securities, Hiroichi Nishi said “There’s a lack of domestic factors to trade on. Until corporate earnings for the April-June quarter are released later this month trading may stay sluggish”. Today Japan Ministry of Health, Labour and Welfare released its Average Cash Earnings data. The data came in at 1.1% vs -0.4% expected.

Asian session started flat but later on major currencies fell against USD. EUR/USD is trading at 1.4482 by the time of typing and for today resistances are located at 1.4560 and 1.4615. Support levels are 1.4454 and 1.4400. Failing to climb over 1.4550 is negative for the parity. If 1.4400 support can’t hold, EUR/USD Read more »

Asian Stock markets opened higher today after better than expected U.S. manufacturing data last week boosted investors’ optimism about the global economy. The Nikkei seems to extend its rally into a fifth day today. NIKKEI started the day at 9,980.16, previous close was 9,868.07. HANG SENG opened at 22,795.39, previous close was 22,398.10. Chief strategist at Monex Securities, Takashi Hiroki, said “The data we have seen last week such as U.S. ISM figures beat market expectations. So investors don’t have any reason to refrain from buying. The market will likely test the 10,000 mark”. However considering the gains in the past two weeks, some analysts think that the market is overbought and some profit taking may emerge. Today Bank of Japan released its Monetary Base figures. The data came in at 17.0% vs 16.4% expected.

Asian session started with major currencies’ strength against USD. EUR/USD is trading at 1.4562 by the time of typing and for today Read more »

Asian Stock markets opened higher today as investors’ concern ease over Greece’s debt problems. NIKKEI started the day at 9,838.09, previous close was 9,797.26. HANG SENG opened at 22,224.01, previous close was 22,061.18. The Nikkei hit seven week high but it is unlikely that it will climb further sharply at this point. Investors started taking profits near major resistance despite easing worries about Greece’s fiscal problems and hopes that Japanese companies are recovering from damage after the earthquake are supporting Tokyo shares.

Asian session started with major currencies’ strength against USD. EUR/USD is trading at 1.4512 by the time of typing and for today resistances are located at 1.4522 and 1.4598. Support levels are 1.4403 and 1.4330.

GBP/USD is at 1.6106. Resistance levels are located at 1.6137 and 1.6202. Supports are located at 1.6034 and 1.5930.

USD/JPY is trading at 80.44. Resistance levels are located at 80.83 and 81.11. Supports are located at 80.20 and 79.86

USD/CHF is Read more »

Asian stock markets opened higher today but the market participants are cautious before Federal Open Market Committee Statement tomorrow. NIKKEI started the day at 9,420.43, previous close was 9,354.32. HANG SENG opened at 21,770.59, previous close was 21,599.51. Greek debt problems and shortage of good news are limiting the gains. Besides slowing growth in U.S. economy is still pressuring the markets.

Asian trading session started the day with USD weakness. USD is weakening against its major counterparts. Safe heaven currencies CHF and JPY are performing better than EUR, AUD and GBP.

AUD was rising during early hours until Reserve Bank of Australia released Minutes of the Monetary Policy Meeting (June 7 Board Meeting). The minutes said “This outlook suggested that further tightening in monetary policy would be necessary at some point. Members considered, however, that the flow of data over the past month had not added any urgency to the need for an adjustment to policy. In Read more »

Asian stock markets opened slightly higher today NIKKEI started the day at 9,589.54, previous close was 9,547.79. HANG SENG opened at 22,530.28, previous close was 22,496.00. Helped by the United States Retail Sales data released yesterday, the Nikkei is rising slowly today. Analysts say that Tokyo market’s gains are moderate due to lack of a local catalyst.

Asian trading session started with some USD strength against EUR, GBP and NZD. JPY is rising against EUR and USD. CHF is going flat against GBP and rising against EUR by the time of writing. AUD dropped after the weak Westpac Consumer Sentiment index came worse than forecasts. Index of Consumer Sentiment fell by 2.6% from 103.9 to 101.2 in June. This is the lowest print of the index since June 2009.

Commonwealth Bank of Australia currency strategist Joseph Capurso said “Given that increase in the U.S. bond yields overnight, that makes other currencies less attractive. It would Read more »

The Currency market started the day with USD gaining some strength against JPY. CHF/USD is going flat. EUR and GBP are showing strength against USD in the Asian session. Today we see Asian stock markets opening lower again. NIKKEI started the day at 9,411.71, previous close was 9,449.46. HANG SENG opened at 22,640.48, previous close was 22,661.63.

AUD dropped against other major currencies sharply after the Employment data released. The figures were worse than the market expected. The report showed that the nation’s employers added fewer jobs. The data came in at 7.8K, vs 25.6K expected. Full-time employment declined by 22,000 in May. Number of part-time jobs rose 29,800 last month. Participation rate, which measures the labor force as a percentage of the population over 15 years old, came in at 65.6%, vs 65.7% expected. Combination of Today’s figures and yesterday’s RBA statement are clearly putting more selling pressure on AUD for sure.

EUR/USD is climbing and trying Read more »