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

 


Dollar falls as traders stop to review uncertain outlook

14.34 AEDT, Thursday 31 January 2013

Dollar falls as traders stop to review uncertain outlook
By Ben Taylor (Sales Trader, CMC Markets)

With the S&P 4% from its record set in 2007 and the Dow only 2% from its all-time high traders have spent the day contemplating the catalyst to continue to push our upward trend. The lack of confidence in the US this week was over looked but a first estimate GDP figure was all too much for a market screaming overbought.

However, the US GDP miss does need to be taken with a grain of salt; Hurricane Sandy and the height of the fiscal fears are clearly lurking in this result. Business hiring, investing and purchasing intentions were also skewed from a lack of clear guidance over the fiscal cliff and its implications. The figure was not helped along by a fall in US government military spending.

Despite the Fed reaffirming its ongoing asset purchase and zero interest rate policy, which should see the Aussie dollar rally on USD weakness, we have instead seen the Australian dollar fall today. Traders have sent the Aussie dollar lower over the last 24 hours after reviewing their outlook for the macro environment, the need for further cuts to domestic interest rates, and an unprecedented seven months of political uncertainty until the election.

Investors have been furiously considering the political impact of a change of government given we now know the election date. The impact of new a broadband policy, scrapping the carbon tax, repealing the mining tax as well as other reform risks are being swung through analyst’s models today in an attempt to stay ahead of the pack.

I believe risk will be off the table and the markets mood will be one of consolidation until next week after we have more clarity over the all-important non-farm payrolls and US unemployment read.


Web: http://www.cmcmarkets.com/

END

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news