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

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

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:

More:

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:

Get More From Scoop

 
 
Standards New Zealand

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