Monday 11th October, 2013: Daily Market Analysis by Tom Williams
Join our chief analyst, Tom Williams, as he elegantly jumps from one chart to the other in pursuit after potential trades. Although the JPY market is on holiday and the rest of the markets display slight liquidity, if any, Tom recons the opening of the U.S. markets will bring light into your trading day.
Australia to Release Interest Rate Tomorrow
The Reserve Bank of Australia is expected to announce its interest rate for the month of November tomorrow 5 November 2013. At this time, most experts do not believe that the central bank will opt to shift the standing rate from its current levels.
Analysts note that recent reports in Australia have pointed to increased levels of consumer spending, helping to boost the economy. Moreover, the Aussie has shown recognizable gains against all of the 16 currencies that it normally trades against. Based on this string of positive data, it is unlikely that the monetary body would want to take any actions that could shift the direction of the progress.
While analysts do not believe that the release of the report will bring any significant changes to the market, traders are advised to look for continued advances by the Aussie in the coming week.
New Zealand Set to Issue Employment Data on Tuesday
The reports detailing the current state of employment in the small island nation is due to be released tomorrow, 5 November 2013. Currently, many experts have stated that they foresee gains in the Kiwi job market, with both the number of jobs added to the work force, as well as an expected drop in the unemployment rate for the third quarter of the year.
Analysts note that the Kiwi has hit some rocky points in trading over the last week, while still succeeding in being able to recover from any of its minor losses.
Analysts advise traders to look for potential changes to the NZD following the release of the report, as it may help to boost investor confidence in the Kiwi.
Oil and Gold Remain at Lows in Trading
It was reported on 4 November 2013 that gold and crude, two of the market?s high value commodities had continued to drop in value. Analysts point to a number of factors that are affecting these assets in their trading, thus pushing down their prices.
The haven asset gold had succeeded in making a slight rebound in recent weeks due to concerns by investors over the FOMC?s direction on the $85 billion stimulus package that many has hoped would begin to be reduced. However due to the poor numbers in the jobs report, the monetary body decided against making any shifts to their policy at this time. However, with new reports pointing to increased positive movement in the US economy, including an unexpected rise in the production numbers from American manufacturing, the dollar has improved, thus drawing investors away from gold, bringing it to a three month low. Readers are reminded that the precious metal has suffered throughout the year, reporting some of its lowest numbers in recent history.
As for crude, the latest reports covering the levels of American stockpiles of the fuel have pointed to continued high reserves, thus lowering demand. Moreover, it would appear that Libya is increasing its production, adding excess saturation to the market, helping to push down prices. Libya has been long affected by the instability following the revolution there that toppled the regime of dictator Muammar al-Qaddafi. However with the return of Libya?s massive oil production, there will likely be added fluctuations in the market.
Analysts believe that as the USD increases, these assets will likely continue to suffer in the coming weeks and months as investors are drawn away to more promising trading opportunities.