Market Comment |
Australia |
| The S&P/ASX 200 index dropped 2.41% or 135.323pts to 5474.78 (day range: 5571.4 – 5474.78) on Friday. The index is below its 20d MA (@ 5625) and below its 50d MA (@ 5585). 33% of the index constituents are above their 20D MA (vs 54% the previous session) and 40% of the shares are above their 50D MA (vs 47%).
Reserve Bank of Australia released ment on Monetary Policy: “Inflation in the June quarter was broadly as expected and inflationary pressures remain contained. Consumer price inflation has been affected by movements in fuel prices, which are around 10% lower than they were a year earlier. (…) Growth in the Australian economy is expected to pick up gradually to be over 3% by 2017.(…) Further large falls in mining investment are expected to be offset by strong growth of resource exports. (…) The unemployment rate is forecast to be lower than previously anticipated. (…) The inflation forecast has been revised up a little since the previous Statement, primarily because the Australian dollar has depreciated further, implying additional growth in the prices of tradable items over the next few years. (…) Since the May Statement, the Board has judged that an accommodative stance of monetary policy remains appropriate.” The Australian Industry Group/Housing Industry Association Australian Performance of Construction Index (Australian PCI) gained 0.7 points MoM to 47.1 in July. Australia’s home loans rose 4.4% MoM in June vs -7.3% in May, according to the Australian Bureau of Statistics. |
| Foreign Exchange | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The US dollar was mixed against its major counterparts on Friday. On the US economic data front, US Payrolls increased 215K in July compared to an increase of 223K in June (225K estimate). The jobless rate held at 5.3% in July.
The Euro was stronger against its major pairs except for the Australian and New Zealand Dollar. In Europe, German industrial production fell 1.4% in June after a 0.2% increase the month before (revised from a stability). Economists anticipated +0.3%. German trade balance excess increase to E24B in June from E19.5B in May. Exports slid by 1% while imports decreased by 0.5%. UK trade balance deficit was up to £1.6B in June from £0.89B a month earlier. The Australian dollar was higher against all of its major counterparts except for the New Zealand Dollar. |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The information contained in this publication is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Any opinion offered herein reflects TRADING CENTRAL current judgment and may change without notice. Users acknowledge and agree to the fact that, by its very nature, any investment in shares, stock options and similar and assimilated products is characterised by a certain degree of uncertainty and that, consequently, any investment of this nature involves risks for which the user is solely responsible and liable.
Easy Forex Pty Ltd (AFSL 246566 ABN 73107184510) makes no recommendations as to the merits of any financial product referred to in this website, emails or its related websites and the information contained does not take into account your personal objectives, financial situation and needs. Easy-Forex recommends that you read the Regulation Page, The Product Disclosure Statement, the Terms and Conditions and the Financial Services Guide before making any decision concerning Easy-Forex’s products.