Aussie benefits from dollar pause

25 November, 2015

Volatility remains subdued during this quiet trading week and yesterday was an example of how disengaged investors are at this moment in time. Better than expected US GDP and Case-Shiller House Price data balanced out the bad consumer confidence and slightly worse numbers on Monday leading to a little profit taking in the dollar, but the wider picture in respect to interest rates and the next FOMC meeting remains unchanged. With US Thanksgiving tomorrow and the shortened trading week, already eyes are on next week’s nonfarm payroll figure although this now seems that it will be little more than a formality as the big dip in consumer confidence did little to move rate expectations. One of the main beneficiaries of the dollar’s inability to push higher is the Aussie where AUDUSD continues to push away from the 0.7000 level despite all that’s going against it in respect to lower commodity prices. This will be being closely watched by the RBA who would rather see the Aussie lower so next Tuesday’s RBA rate decision will be another important central bank meeting to watch in December.

From the US the weekly initial jobs numbers, a day earlier than normal, should be monitored, then the services and composite PMI at 14.45 GMT. Ahead of then UK markets will be keeping one eye on the Chancellor’s Autumn Statement which is unlikely to have too much impact on the markets although his plans for a government surplus by 2020 will have to change after all that’s happened recently with his tax credit proposals and the latest defence review.


Source  
Calls for a US "digital dollar" rise

A growing number of voices are calling for the U.S. to issue a "digital dollar" as China continues to work on a digital version of its own currency. Users of the U.S...

Death Cross growth abroad threaten U.S. dollar

Storm clouds are gathering over the U.S. dollar, threatening a two-year rally in the currency that has squeezed corporate profits and angered...

Will the BoJ and the ECB join the Fed?

Monday is a day off in the American markets due to the Martin Luther King's Day. Because of the holiday, trading on other markets also promises...


More data confirms positive market sentiment

Markets reacted sluggishly to the vote in the US House of Representatives, which initiated the third impeachment of the president in the history of the country...

Risky assets prevail in the markets

The end of the year on the financial markets turned out to be very positive. Asian stock markets ply near multi-month highs; the American markets are...

Most Momentous Rate Decision

The world's oldest central bank stands to be the most significant this month as it pioneers a shift away from negative interest rates. Sweden was among...


OPEC considering deeper cut to oil production

Global oil-producing group OPEC and its allies are meeting in Vienna, with expectations raised over whether the alliance will make further cuts to its output...

Peaked trade optimism?

Throughout the past week, the US dollar has received support after strengthening expectations that the Fed will take an extended break after three consecutive rate cuts...

Russel 2000 doesn't support S&P500 optimism

S&P500 closed Monday at historical highs, adding 0.55% on the day close. Both expected new Fed interest rates cut and possible...