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

 

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Science Media Centre: Viral Science And Another 'Big Dry'?

"Potentially, if there is no significant rainfall for the next month or so, we could be heading into one of the worst nation-wide droughts we’ve seen for some time," warns NIWA principal climate scientist Dr Andrew Tait. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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