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

 


Resumption of risk appetite sends AUD higher

15.33 AEDT, Monday 26 November 2012

Resumption of risk appetite sends AUD higher
By Tim Waterer (Senior Trader, CMC Markets)

The rally on financial markets to end last week suggests that traders are anticipating favourable outcomes on key issues such as the Fiscal cliff and further aid for Greece. The festive mood from Thanksgiving carried over to Wall Street with the Black Friday sales numbers igniting a fresh bout of market enthusiasm.

With investors feeling good about the world again, US Dollar demand was diminished which opened the door for some serious moves to the high side for oil, gold and the Euro. The Euro has staged an impressive comeback performance to now be knocking on the door of the 1.30 level despite being in the doldrums mid-November. If we get sign off on the next tranche of Greek aid, 1.3050 looks a likely target.

The resumption of risk appetite late last week has resulted in the Australian Dollar moving to within striking distance of 1.05. With the appeal of the Greenback decreased on high hopes of a strong finish to the year by financial markets, the AUD has made the best of the conditions with traders recommencing the quest for yield. At least for the moment, yield is sought while we have expectations that Europe will avoid catastrophe and that the US will get the budget dilemma sorted in time.

Today has been about consolidation for the AUD with the currency barely moving given the lack of new developments during the Asian session. It is possible that a favourable outcome on Greece from the EU finance ministers could have the AUD testing 1.05 in the coming 24-48hrs if equity markets keep ticking higher in a sign of continued buying confidence.

Despite the enthusiastic rise by Wall Street on Friday, the Australian market was slow to get out of the gates today with traders adopting a fairly measured approach as we await word from the Eurozone finance Ministers regarding Greek aid. With the Greek-aid situation in Europe and the budget discussions in the US both still ongoing, the ASX200 was reluctant to move out of first gear today given we still have some crucial as-yet unresolved issues abroad. As such, the Australian market moved at its own pace today with traders needing further convincing that the Friday rally on Wall Street was legit and not solely fuelled by Thanksgiving cheer.

______________

The Financial Products offered by CMC Markets Asia Pacific Pty Ltd (ABN 11 100 058 213, AFSL No. 238054, the CFD issuer), CMC Markets Stockbroking Ltd (Participant of the ASX Group, ABN 69 081 002 851, AFSL No. 246381, the stockbroking services provider) and CMC Markets Pty Ltd (ABN 75 100 058 106, AFSL No. 279437, the education services provider) (“CMC Markets”) carry varying amounts of risk. Leveraged products, such as CFDs, Options and Warrants carry more significant risks than other products and may not be suitable for all investors. You should consider whether or not financial products including CFDs are suitable for you. CMC Markets recommends that you should seek independent professional advice and ensure you fully understand the risks involved before trading.

www.cmcmarkets.com.au.

ENDS

© 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