Focusing on currencies and commodities, Tom reflects on the sustain strength the NZD displays in recent days. In addition, the fall of the Gold and Silver prices present opportunity of trading Put options, which indicate high potential trades. Watch this video, it will help you decide on where to invest your capital.
US Advance Retail Sales Report to be Released Friday
The report covering the Advance Retail Sales during the month of August in the United States is set to be issued tomorrow Friday 13, 2013. At this time, the majority of experts believe that the findings for the report will likely show a rise in comparison with the previous month of July 2013.
Readers are reminded that this report is meant to provide a clearer picture to economists on the state of consumers in the US, focusing on their feelings regarding their ability to purchase durable goods that are not generally considered as immediate or basic needs. These durable goods can range from products including televisions, cars, and other items that consumers may decide to hold off on buying until they are in a more stable economic position. As such, when observers are provided with a report that shows that the advance sales have risen, they can assess from this that more people are employed and are willing to engage in the economy.
Analysts note that the US Advance Retail Sales numbers have been on the rise in recent months as American has enjoyed a strengthening recovery. The recent employment reports have shown a considerable drop in the levels of unemployment, helping to bring many consumers back into the spending market. Based on this information, analysts assess with reasonable probability that the ability of consumers to re-engage has increased and therefore retailers have good reason to raise their orders for the aforementioned consumer goods.
Should the report indeed show that the retail sales have increased, then it will likely help to further boost up the USD in trading. That said, traders are still advised to proceed with caution as possible shifts can still occur, potentially affecting the dollar’s value.
University of Michigan Consumer Report to be Issued on Friday
In more consumer news for the United States, many observers are anxiously awaiting the issuance of the University of Michigan’s monthly consumer confidence report for the month of September 2013. Currently, many experts believe that there may only be a slight decline in the numbers from the previous month of August when the report was last published.
Analysts remind readers that the Michigan report is closely watched by experts due to the fact that it has a much faster turn around period than the official government issued report, thus providing observers with a more timely picture of the state of the economy at this time.
Despite the possibility that there may be a slight drop in the level of consumer confidence, it is important to note that the level remains high, hovering around 82%. Once again, analysts point to the improving jobs numbers as a key factor in the relatively high figure for the consumer confidence. Analysts point to the supposed rise in the Advance Retail Sales numbers that may mean an increase confidence and participation by consumers over the coming term.
Investors should trade the USD in its pairings against other currencies with care as the release of the report has the potential to cause volatility in the market.
Aussie Drops on Jobs Numbers
It was reported on 12 September 2013 that the Aussie had taken a hit in trading due to the most recent damaging unemployment report that showed a significant level of job loss for the month of August 2013. It should be noted that while Australia bled slightly less jobs during August as compared with July, the failure of the government and the economy to help stem the losses has had an effect on the nation’s currency.
Analysts believe that the level of unemployment will be likely to rise over the coming month as there does not appear to be any significant movement afoot to alter the current course of the economy as it stands.
Investors are advised that the Aussie will likely continue to fall in the coming days and weeks, despite some recent jumps. As such, traders are advised to exercise extreme caution in their trading of the Aussie against its rival currencies.