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

 

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news