Fundamental News: September 12, 2013
The Reserve Bank of New Zealand started the ball rolling today and declared to hold the Official Cash Rate at 2.50 percent. RBNZ Governor Wheeler expressed that the local economy is growing at a pace of 3 percent per year (with broad-based recoveries) and there is chance to raise interest rates next year. Wheeler still views the NZD to be high. Moreover, he hopes that the US Dollar would strengthen so that the upward pressure on New Zealand Dollar will ease.
In Japan, Core Machinery Orders turned flat in July, following a 2.7 percent decline in June. Analysts were expecting a 2.5 percent advance.
In Australia, the Employment Change data slumped 10,800 in August. This was a big surprise as analysts were looking for a gain of 10,200 jobs. This now puts the Employment Change data in a two consecutive month decline. Unemployment Rate came in as expected at 5.8 percent.
In Europe, Eurostat reported that Euro-area Industrial Production declined in July. The 1.5 percent decline was far worse than the -0.1 percent expectation and the worse reading in a year.
Later, the market will keep an eye on the release of Canada’s New Housing Price Index, US Unemployment Claims, US Import Prices, and US Federal Budget Balance.
Gold was eerily quiet in yesterday’s trading, when price hung around a $12 range very tightly. Eventually, price took a slide a few hours ago as the mounting pressure was too much for bulls to bear. Next point of target for willing sellers is the break of the $1,270-$1,320 area. A much tougher defense is expected here.
Unlike Gold, Oil held its own yesterday and bulls continued the march higher today. Since sellers failed in its first attempt to reach $105, we could see buyers to take their turn to try and breach $109-$110.