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

 

Errors Found: Electricity Authority Dumps Transmission Pricing Modelling

The Electricity Authority is ditching the cost-benefit analysis at the heart of its controversial attempt to find a new way to divide up costs for the national grid after finding an expanding range of serious computational errors in the work by Australian consultancy Oakley Greenwood. More>>

ALSO:

New Record: Migrant Arrivals At 129,500 A Year

Annual net migration has been steadily increasing since 2012. "This was mainly due to the rising number of migrant arrivals to New Zealand," population statistics senior manager Peter Dolan said. "Fewer migrant departures also contributed to the increase in net migration." More>>

ALSO:

Launched: NASA's Super Pressure Balloon Takes Flight From NZ

NASA successfully launched its football-stadium-sized, heavy-lift super pressure balloon (SPB) from Wanaka, New Zealand, at10:50 a.m. Tuesday, April 25 (6:50 p.m. April 24 in U.S. Eastern Time), on a mission designed to run 100 or more days floating at 110,000 feet (33.5 km) about the globe in the southern hemisphere's mid-latitude band. More>>

ALSO:

Trade Agreements: TPP Minus US Starting To Gain Ground

The Japanese government is picking up the pace on reviving the Trans-Pacific Partnership trade and investment deal, with talks scheduled next month among the 11 countries left in the pact after the withdrawal by the US after the election of president Donald Trump. More>>

ALSO:

PACER:

Prices Up 2.2%: Annual Inflation Highest In Over Five Years

"Rising petrol prices along with the annual rise in cigarette and tobacco tax lifted inflation," prices senior manager Jason Attewell said. "Petrol prices in New Zealand are closely linked to global oil prices, and cigarettes and tobacco taxes rise in the March quarter each year". More>>

ALSO:

Undertaxed? NZ Income Tax Rate Second Lowest Among Developed Nations

New Zealand workers pay the second smallest portion of their income to the government among developed nations and less than half the average ratio of their Organisation for Economic Cooperation and Development peers. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news