Month: January 2017

XE Market Analysis: North America – Jan 09, 2017

The dollar saw some chop in early-week trade. USD-JPY dove to a low of 116.63 during the London AM session after lifting in Asia to a three-session high of 117.53. EUR-USD settled at near net unchanged levels around 1.0525-30 after whipsawing between 1.0510 and 1.0556. Sterling tumbled, and while off its lows was showing an… Read more »

XE Market Analysis: Europe – Jan 09, 2017

The dollar has risen in early-week trade, supported by favourable yield differentials following the U.S. jobs report on Friday. The data showed a 0.4% spike in earnings, re-energizing expectations for further Fed rate hikes, which had been subdued somewhat following last week’s less hawkish than expected December FOMC minutes. USD-JPY lifted to a three-session high… Read more »

WA harvest breaks record

WESTERN Australia’s 2016-17 harvest receivals are “well over 16 million tonnes” and rising, breaking the previous WA record of 15.8MT set in 2013/14, according to CEO of the state’s bulk handler, CBH Group, Andy Crane. Receivals from the current harvest are still flowing into sites in the southern WA grainbelt. The new state record harvest,… Read more »

2016 beef exports slump 21pc, but still crack one million tonne mark

AUSTRALIA’S beef and veal exports for calendar year 2016 slumped by almost 21 percent, but still managed to eclipse the one million tonne mark for only the fourth time in history. After a late December surge, total exports last year reached 1.018 million tonnes, a decline of 267,000t or 20.7pc on the previous year, which… Read more »

CQ’s Glenprairie sells for $45m, as industry opposition to military land grab grows

Brahman cattle on the move on 27,000ha Glenprairie, north of Rockhampton THE Australian Government has agreed to buy Glenprairie Station on the Central Queensland coast north of Rockhampton for a reported price of around $45 million, to fill a Department of Defence training ground role. The sale announcement comes at the same time that Queensland… Read more »

US, NZ win WTO beef case, Indo to appeal

The United States and New Zealand are celebrating a victory in a five-year battle to gain greater access to Indonesia’s market for beef, along with several other ag commodities. In 2013 both countries launched a joint World Trade Organisation challenge against import prohibitions and sale restrictions introduced by Indonesia in 2011. In late December a… Read more »

Heatwave set for NSW, Qld + special climate statement

A severe heatwave will push temperatures to the mid-forties from tomorrow to Friday in parts of northern New South Wales and Southwest Queensland, according to Weatherzone. Behind the hear is an area of high pressure to the east of Australia, which will stubbornly hold a mass of hot air over parts of New South Wales… Read more »

US Bond Market Week in Review: Fed Minutes Show a Fed Ready to Raise Rates

     This week, the Federal Reserve issued their latest meeting minutes.  They viewed the labor market positively: unemployment and initial claims for unemployment were low while wages were increasing at slightly higher rates.  PCEs were growing moderately and future indicators of consumer spending were bullish.  Industrial production was recently unchanged but mostly due to a drop… Read more »

US Equity and Economic Review: A Great Start to the Year, Edition

     The Institute for Supply Management released their manufacturing and service sector reports this week.  The former increased 1.5 points to 54.7.  New orders rose a very strong 7.2 points to 60.2; production and exports orders also rose.  The later was unchanged at a high reading of 57.2. The new order component rose 4.2 points.  Both… Read more »

International Economic Week in Review: A Good Start to the Year

     The international community ended 2016 on solid footing.  China has continued to avoid the predictions of some of a hard landing while the EU had some of its best post-Great Recession manufacturing and service numbers.  The UK continues to avoid the much prophesized post-Brexit recessive while Canada has more likely than not emerged… Read more »

Weekly Indicators: mortgage applications turn negative edition

Commodity prices bottomed over one year ago. After briefly turning negative, metals have now surged higher since the election. Stock prices S&P 500 Up +1.7% w/w Stock prices are positive, having made a string of new all-time highs beginning last summer. Regional Fed New Orders Indexes (*indicates report this week)(no reports this week) Empire State… Read more »

XE Market Analysis: Asia – Jan 06, 2017

After slipping initially, the dollar rallied in N.Y. trade on Friday following the December jobs report, which was light on the NFP print, though upwardly revised back months, and stronger hourly earnings data offset. Yields edged higher, while the three major stock market indices traded to all time highs. As of the time of this… Read more »

XE Market Analysis: US Job Growth Slows

OVERVIEW German retail sales fell more than expected in November, declining 1.8% after their biggest monthly rise in years in October. Eurozone retail sales also declined in November by 0.4%, which was in line with forecasts, but rose 2.3% year-on-year. US unemployment rose as expected to 4.7%, but remains near its lowest level in nine… Read more »

Corporate profits as leading stock prices: year end 2016 edition

One insight generated by making use of overall leading economic indicators is that, if corporate profits are a long leading indicator, and stock prices a short one, then it stands to reason that corporate profits actually lead, rather than follow, stocks, at least when measured as a quarterly average.Since Q4 2016 is ended, let’s update… Read more »

XE Market Analysis: North America – Jan 06, 2017

The dollar recovered from fresh lows that were seen during the early Asia-Pacific session. USD-JPY hit three-week low of 115.07 before recouping over a big figure to the low 116s. EUR-USD logged an eight-day high of 1.0615 before ebbing back to the 1.0580 area. Position rejigging has been afoot as markets brace for the U.S…. Read more »

Slow start to AuctionsPlus trading year, with young PTIC females to $2240

Young PTIC females were well represented on Friday, with joined heifers years averaging $1950. Top price of $2240 was paid for this line of 20-22 month old Angus and Friesian heifers hailing from Inman Valley, SA. WITH only a short week and a lot of stakeholders still in holiday as January 2017 gets moving, there… Read more »

XE Market Analysis: Europe – Jan 06, 2017

The dollar lifted from fresh lows that were seen during the early Asia-Pacific session. USD-JPY hit three-week low of 115.07 before recouping over a big figure to the low 116s. EUR-USD logged an eight-day high of 1.0615 before ebbing back to the 1.0580 area. Position rejigging has been seen as markets brace for the U.S…. Read more »

XE Market Analysis: Asia – Jan 05, 2017

The dollar took it on the chin in N.Y. trade on Thursday, taking the DXY to 101.30 lows, levels last seen on December 14, and down from 14-year highs of 103.82 printed on Monday. The sell-off was broad based, with all major currencies rallying against the greenback. Incoming U.S. data was pretty good overall, though… Read more »

XE Market Analysis: Chinese Yuan Surge Weakens Dollar

OVERVIEW The Dollar became under pressure overnight following China’s central bank setting its currency at a higher midpoint for the Yuan versus the Dollar.  The FOMC minutes were neutral as most of the committee “indicated that the upside risks to their forecasts for economic growth had increased” due to Trump’s victory.  China’s services sector PMI… Read more »

XE Market Analysis: North America – Jan 05, 2017

The dollar sank to fresh post-FOMC minutes lows during the Asian session before staging a rebound in the European AM session, returning the buck to near net unchanged levels versus the euro and sterling, though still leaving it down by over 0.5% in the case against the yen. USD-JPY recouped above 116.50 after logging a… Read more »

XE Market Analysis: Europe – Jan 05, 2017

The dollar came under broad pressure following the less hawkish than expected tone in the minutes to the December FOMC meeting, when the Fed hike the funds rate by 25 bp. USD-JPY led the way, falling over 1% to a one-week low of 115.58, and has now declined some three big figures since Tuesday’s 118.61… Read more »

XE Market Analysis: Asia – Jan 04, 2017

The dollar faded again in N.Y. trade on Wednesday, though ranges were fairly narrow overall. The FX market appears to be in a bit of consolidation mode, and we look for more of the same into Friday’s U.S. employment report. There was little data to move markets today, though Wall Street managed further moderate gains,… Read more »

XE Market Analysis: Strong Data Helps Emerging Market Currencies

OVERVIEW Upbeat economic data from the world’s major economies are keeping investors positive about the global outlook, boosting emerging market currencies that are today’s top performers. Eurozone business activity growth hit its highest since May 2011 last month, after the services PMI was revised up to 53.7. Japanese manufacturing activity completed a picture of rising… Read more »

XE Market Analysis: North America – Jan 04, 2017

The dollar came off the boil after logging 14-year highs yesterday, by the measure of its narrow trade-weighted gauge. EUR-USD carved out an intraday high at 1..0446 following the largely expected acceleration in Eurozone HICP to 1.1% y/y in December, nearly double the November figure of 0.6%. The final reading of the Eurozone services PMI… Read more »

XE Market Analysis: Europe – Jan 04, 2017

The dollar came off the boil after logging 14-year highs yesterday, by the measure of its narrow trade-weighted gauge. USD-JPY settled in a narrow orbit of 118.00 logged after yesterday logging high of 118.61, which was five pips shy of the trend peak. Japanese markets reopened, and stock markets there roared, with the Nikkei 225… Read more »

XE Market Analysis: Asia – Jan 03, 2017

The dollar rallied early in the session in N.Y. on Tuesday, moving to session highs in the aftermath of strong manufacturing ISM and construction spending data. Yields moved higher, as did Wall Street initially. Another DJIA attempt and fail to print the 20k level however, resulted in profit taking in both stocks and the dollar…. Read more »

XE Market Analysis: US Dollar Starts 2017 On the Front Foot

OVERVIEW FX markets have returned to normal trading conditions after the holidays, as the Euro jumped almost 2% against the Dollar on the last trading day of 2016. German consumer price inflation hit its highest level in over 3 years in December, as rising energy prices and higher food costs saw CPI rise 1.7% year-on-year…. Read more »

XE Market Analysis: North America – Jan 03, 2017

USD-JPY rallied 0.7% to a high of 118.35, resuming the bullish trend that was seen up until Christmas/New Year pause and returning focus on the December 15 trend peak at 118.66. The euro traded weaker despite perky German state inflation data and an encouraging German labour report, which followed yesterday’s release of a solid final… Read more »

XE Market Analysis: Europe – Jan 03, 2017

A subdued start to the new year has been seen in forex markets. USD-JPY has been holding a narrow range in the mid 117s. EUR-USD is trading softer, near 1.0450, well off the high seen at 1.0657 on Friday, which is seen as an aberration as it occurred in an ultra-thin market. A strong PMI… Read more »

NVLX Wodonga 2 Jan 2017: Market opens on higher note

The first prime sale of year produced a small offering of only 588 cattle. The seasonal shortage of top quality domestic and export slaughter cattle gave the market an edge at Wodonga, with prices improving by up to 11c/kg. The trend was evident over all slaughter cattle, where the best heavy steers 500-600kg sold 10c… Read more »

Weekly Indicators: interest rates turn more neutral edition

Commodity prices bottomed about one year ago. After briefly turning negative, metals have now surged higher since the election. Stock prices S&P 500 Up +0.3% w/w  Stock prices became a positive having made new all-time highs in summer, and more new highs since.. Regional Fed New Orders Indexes (*indicates report this week) Empire State up… Read more »