Today’s Commentary
Releases over the last 24 hours have been a mixed bag but the NZD has found enough support to add to yesterday’s gains.
In Australia, news that building approvals surged ahead by 2.7% was countered by an unexpected fall in retail sales of 0.20%. In the US an independent employment release and a measure of health in the service sector both missed forecasts. Both were still taken as positives though as they were better than previous results. The news was good enough to keep equity traders buying and as we opened this morning the Dow was up over 1%.
The night’s events were just window dressing for the Fed announcement this morning though. The Fed kept rates on hold and perhaps more importantly their press release retained the statement that they plan to keep them there “for an extended time”, the markets have reacted well to the continued stability.
With one big central bank announcement down there are just two more to go. The BoE and ECB will be facing the press in the small hours of tomorrow morning so the potential for volatility remain high.
Upcoming Announcements:
• 05 november 09: AU Trade Balance
• 05 November 09: NZ Unemployment Rate
• 05 November 09: EZ Retails Sales
• 06 November 09: EZ ECB Interest Rate
• 06 november 09: UK BoE Interest Rate
By Sam Spink - McCarthy, Corporate Dealer
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