Binary Options News : December 4, 2013
Aussie Declines on Poor Q3 GDP. Nikkei Tanks
The Australian Dollar was the biggest mover in the currency markets, falling on the back of disappointing Q3 GDP results, whilst Japan’s Nikkei 225 tanked more than 2% after comments from Bank of Japan board member, Takehiro Sato dampened expectations for more stimulus, after he said that further monetary easing wouldn’t help raise inflation.
In Australia, the third quarter GDP data saw terms of trade fall 3.3% the largest decline in four quarters. Data from Australia – the world’s 12th largest economy – showed that there was a gain of 0.6% for the Q3, but this was lower than the forecast of an 0.8% increase quarter on quarter. Yesterday, the RBA kept interest rates at their record low of 2.5%, but afterwards in a statement, Governor Stevens said the rate was “uncomfortably high”.
In a quiet day on the economic calendar yesterday, better than expected data from the Spanish labor market boosted the euro and weakened the USD. The number of unemployed individuals in Spain fell by 2,500 for November, surpassing forecasts calling for a 44300 increase and far better than the 87,000 increase seen in October.
Asian stocks were mixed in overnight trading, with the regional index nearing a 6 month high. The comments from Takehiro Sato helped send the Nikkei 225 down 2.05% whilst the Q3 results in Australia saw the S&P/ASX 200 rebound from a 0.20% decline to be up 0.37%. Growing speculation of further economic reforms in China helped push the Chinese Shanghai Composite up 1.21% but the Hong Kong’s Hang Seng Index closed down 0.34%.
In thin trade in the currency markets, the US Dollar was mixed and the only real move of any note was in the AUD/USD which fell 0.73% on the back of worse than expected GDP data in Q3. The USD was 0.01% down against both the GBP and the EUR and 0.02% higher against the JPY. A rise in Crude Oil helped the commodity linked CAD rise 0.09% against its American
In more volatile commodity markets, Gold swung from gains to losses and back to gains after investors purchased the precious metal on an overnight dip and demand increased ahead of the Christmas holidays. gold was currently 0.02% higher whilst Silver gained 0.36%. Crude Oil continued its rise, gaining 1.22%, hitting a 1 month high, after data showed a decline in US supply levels. Natural Gas reversed earlier weekly falls, to rise 0.34% in overnight trade on bad cold weather and lower supply levels.
In a far busier day in the economic calendar today than yesterday, more intraday movement is expected. The Eurozone will publish data on retail sales, whilst Spain and Italy will release their individual services PMI’s as will the the UK. Services PMI is a leading indicator of economic health.
The U.S. is to release the ADP report on private sector job creation, data on new home sales and the Institute of Supply Management will publish its services PMI. Both the U.S. and Canada will publish trade balance data and The Bank of Canada will announce its interest rate and publish its rate statement, which will be keenly followed.
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