Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Australian market in ‘drift’ mode

15.12 AEDT, Friday 23 November 2012

Australian market in ‘drift’ mode
By Tim Waterer (Senior Trader, CMC Markets)

With the latest Chinese PMI data having made for pleasant reading, most higher yielding assets were able to maintain some buying impetus despite the US holiday depriving the market of some liquidity. Most markets across Asia pushed higher on Friday, remaining boosted by signs that the contraction period endured by Chinese manufacturers may be at an end.

Elsewhere, the Australian Dollar has been wearing a path in the 1.0370-1.0390 range in the past day. The solid Chinese PMI data kept the currency well supported however there was not enough buying momentum to make a sustained push through 1.04.

Given that the AUD has been able to shrug off some dovish comments from the RBA earlier in the week, the currency could be looking at spending good time next week trading above 1.04. If we have the obstacle of the next aid package for Greece cleared, and a continued closing of the gap between Republicans and Democrats on the Fiscal Cliff discussion, the desire of traders to seek higher yield will increase. But of course if the opposite happens and traders again lean heavily toward risk aversion then support at 1.03 for the AUD could again come into play.

With US investors switching from trading to turkey, the Australian market was in ‘drift’ mode much of Friday given the absence of any fresh leads from Wall Street. Local sharemarket activity took on a rudderless appearance in the wake of the US Thanksgiving Holiday, with the ASX200 unable to build upon the 1% gain from Thursday with no new developments abroad.

On the one hand the US holiday may have stalled some momentum, however another school of thought would suggest that it allowed a consolidation of the rebound performance this week. In any event, stocks seemed content to just saunter into the weekend, with traders knowing that more volatility could be just around the corner. A decision on Greek aid could be delivered early next week which will catch the interest of traders. And of course there is that other ‘little’ matter of the Fiscal Cliff which remains to be resolved.

ENDS

http://www.cmcmarkets.com/


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Scoop Business: ComCom Charges Hawkins’ Finance Companies Over Debt Recovery

The Commerce Commission has filed criminal proceedings against two finance companies run by former 1980s high-flyer Allan Hawkins over their debt recovery practices. More>>

ALSO:

Science Media Centre: The Big Science Stories Of 2014

It was a dramatic year for science, one that witnessed a severe outbreak of Ebola in West Africa and an historic mission to land a space probe on a comet. On the home front... headlines with animal testing for 'legal highs', 1080 use to tackle increased pest numbers and court action over genetically modified organisms among the most-covered stories. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news