Australia Stocks Higher at Close of Trade, S&P/ASX 200 Increase 0.31%

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After the close on Friday, Australia stocks were higher, as increased in the Energy, Financials and Utilities sectors led shares higher.

The S&P/ASX 200 increased 0.31% to hit a new 3-month’s peak, at the close in Australia.

The best performers of the session on the S&P/ASX 200 were M Pharma Fp (AX:MYX), which increased 6.62% or 0.095 points to trade at 1.530 at the close. In the meantime, Seven West Media Ltd (AX:SWM) added 4.26% or 0.030 points to end at 0.735 and GWA Group Ltd (AX:GWA) increase 3.91% or 0.110 points to 2.920 in late trade.

The poorest performers of the session were Sirtex Medical Ltd (AX:SRX),  which decline 37.27% or 9.500 points to trade at 15.990 at the close. Crown Ltd (AX:CWN) declined 5.07% or 0.610 points to end at 11.430 and Aconex Ltd (AX:ACX) declined 4.22% or 0.190 points to 4.310.

Increasing  stocks outnumbered decreasing  ones on the Australia Stock Exchange by 576 to 462 and 331 ended unmoved.

Shares in Sirtex Medical Ltd (AX:SRX)  dropped to 52-week lows; losing 37.27% or 9.500 to 15.990.

The S&P/ASX 200 VIX, which gauges  the implied volatility of S&P/ASX 200 options, increased 1.89% to 12.530.

Gold for February delivery declined 0.23% or 2.75 to $1169.65 a troy ounce. Somewhere else in commodities trading, delivery of crude oil in January increased 0.77% or 0.39 to hit $51.23 a barrel, although the February Brent oil deal increased 0.37% or 0.20 to trade at $54.09 a barrel.

AUD/USD increased 0.01% to 0.7464, while AUD/JPY increase 0.33% to 85.37. The US Dollar Index increased 0.06% at 101.17.

On Additional News

On Friday, shares in Asia were mixed as caution ruled following sharp increased in U.S. equities in the previous month.

Japan’s Nikkei 225 increase 1.16%, while Australia’s S&P/ASX 200 increased  0.23% on a 0.93% surge in the energy sector and a 0.83% uptick in the heavily-weighted financial sector. The Shanghai composite increase 0.4% and the Hang Seng Index declined 0.48%, as gaming shares led losses after reports of Beijing taking aim at the Macau gaming industry in a bid to halt capital outflows.

Wynn Macau dropped 7.8%, Sands China declined 6.4%, Melco International plunged 8.79% and Galaxy shed 6.37%. That followed losses of as much as 10% in their U.S.-listed counterparts overnight.

The South China Morning Post stated that Macau will reduce the withdrawal limit for China UnionPay ATM card holders from 10,000 to 5,000 Macanese patacas ($626), which is projected to take effect from Saturday. ”This, the Post reported, follows the discovery that as much as 10 billion patacas in China UnionPay ATM withdrawals were made in one month alone,” according to the report.

Suddenly, U.S. stocks were higher after the close on Thursday, as increased in the Basic Materials, Financials and Oil & Gas sectors led shares higher.

At the close in NYSE, the Dow Jones Industrial Average increased 0.32% to hit a new all time peak, while the S&P 500 index  increased 0.15%, and the NASDAQ Composite index increased  0.27%.

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Dollar Nears 13 1/2-year Peak, Lifted by Multiple Rate Hike View

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On Wednesday, the greenback traded within sight of a 13 1/2-year high, strengthened by strong U.S. housing data that added cemented expectations for a Federal Reserve rate hike in December and additional  tightening next year.

The dollar last stood at 100.98 compared to a basket of six major currencies. That increased from Tuesday’s low of 100.65 and which is not too far from Friday’s peak of 101.48 – the highest for the dollar index  since April 2003.

Data on Tuesday presented a U.S. home resales increase in October to their highest level in more than 9-1/2 years, helping to support the dollar.

Satoshi Okagawa, senior global market analyst for Sumitomo Mitsui Banking Corporation in Singapore stated, “Still, one factor that has blunted the dollar’s momentum this week is a pull-back in benchmark U.S. 10-year Treasury yields from their recent highs.”

“Bonds have settled down, and that’s a reason why dollar- buying hasn’t been so intense,” Okagawa added.

The U.S. 10-year Treasury yield  raised at 2.319% at Tuesday’s U.S. close, down from Friday’s one year peak  of 2.364%.

The dollar has increased largely over the past couple of weeks, lifted by expectations that the Trump administration would increase fiscal spending, in turn elevating inflation and lifting interest rates.

Compared to the yen, the dollar last changed hands at 111.07 yen . On Tuesday it had increased to as high as 111.36 yen, matching the Monday’s peak, which was the greenback’s strongest level against the yen since late May.

On Wednesday, trading in the yen is expected to be thinner than usual, with Japanese markets not open because of a public holiday.

The dollar’s increase to the approximately six month peak compared to the yen amounted to a increase of 10% from its Nov.9 trough near 101 yen.

The euro last raised at $1.0631,having set an approximately one-year low of $1.0569 the previous week.

Later on Wednesday, attention will turn to U.S. durable goods orders, along with the minutes of the Fed’s November policy meeting.

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Forex Weekly outlook: November 21 – 25

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On Monday, the greenback pushes up to a six month peak in early Asian trading, as investors continued to back bets that the admin of President-elect Donald Trump would start on expansionary fiscal policies and boost development.

Last Friday, the dollar increased to its highest level since April 2003 compared to a basket of the other major currencies, was at 101.41, during a rally motivated by the U.S. presidential election and expectations that the Fed Reserve will increase interest rates the upcoming month.

The dollar increase  to 111.125 yen, its highest since May 31. It was previously down 0.1% at 110.82 as investors placed ahead of the U.S. Thanksgiving holiday later in the week.

The index has increased approximately 3.0% so far this month after the result of the U.S. presidential election, tracking increasing U.S. Treasury yields during expectations that President-elect Donald Trump’s ideas to increase fiscal spending and reduce will spur economic progress and inflation.

More rapid development would spark inflation, which in turn would stimulate the Fed to tighten monetary policy a faster rate than had previously been anticipated.

The greenback recovery has also been increased by bets that the U.S. central bank will almost definitely increase the interest rates the upcoming month.

Federal Reserve Chair Janet Yellen on Thursday reiterated that a rate hike “could well become appropriate relatively soon.”

Investors have given a 95.4% probability of a rate hike at the Fed’s December meeting; according to the reports.

The anticipations for the higher interest rates usually increase the dollar by making it more striking to yield seeking investors.

On Friday, the euro decline  to 11-month lows compared to the dollar, with EUR/USD at 1.0588 in late trade.  During the week,  the pair was down 2.16 percent.

The dollar increase to five-and-a-half month peak against the yen, with USD/JPY surge 0.71% at 110.89 in late trade.

The traditional safe haven Swiss  franc drop to nine month lows against the dollar, with USD/CHF hitting peaks of 1.0122, before moving back  to 1.0099 late Friday.

Sterling slid to two-week lows, with GBP/USD  down 0.61% at 1.2344. 

In the week onward, trade volumes are expected to stay light around Thursday’s Thanksgiving holiday and Friday’s shortened trading period.

The survey data on euro zone private sector business activity is also scheduled on Wednesday, it will be carefully observed for fresh signs on the health of the single currency bloc’s economy.

On Additioanal News

On November 21, Canada is to announce data on wholesale sales.

European Central Bank President Mario Draghi is to affirm about the bank’s Annual Report before the European Parliament, in Strasbourg.

On November 22, New Zealand is to post statistic on retail sales. The UK is to report on public sector borrowing. Canada is to release data on retail sales. The U.S. is to create a report on existing home sales.

Financial markets in Japan will stay closed for a holiday on November 23. New Zealand is to report on producer price inflation.

In the UK, Chancellor Philip Hammond will show his autumn budget statement to parliament.

The euro zone is to publish study data on private sector activity.

On Wednesday, the U.S. is scheduled  to release data on durable goods orders, jobless privileges and new home sales ahead of the holiday.

The Fed is to publish the minutes of its November meeting, later in the day.

Thursday, November 24, the Ifo Institute is to announce data on German business climate.

On Friday, November 25, Japan will release data on consumer price inflation.

The U.K. will round up the week with a brush up data on third quarter progresses.

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USD/CAD Pushes Lower After Bank of Canada Holds

On Wednesday, the U.S. dollar pushed lower compared to its Canadian counterpart, after the Bank of Canada left interest rates unmoved and expressed hopefulness regarding the country’s perspectives for development.

USD/CAD reaches 1.3060 during U.S. morning trade, the session low, the pair then consolidated at 1.3046, dropping 0.48%.

The pair was expected to find support at 1.2996, the low of September 22 and resistance at 1.3141, Tuesday’s peak.

The Bank  of  Canada left its overnight cash rate unmoved at 0.50%, in line with market anticipations, along with keeping the bank rate a 0.75% and the deposit rate at 0.25%.

The Bank of Canada also stated the global economy was anticipated to regain momentum in the 2nd half of this year and through 2017 and 2018.

For Canada, the Bank expected progress of 1.1% in 2016 with an increase to “about 2%” in both 2017 and 2018.

The commodity-related Canadian dollar was also boosted by a sudden increase in oil prices on Wednesday, after the Organization of the Petroleum Exporting Countries said in a announcement that a planned production reduction  was attainable.

Temporarily, sentiment on the U.S. greenback stayed delicate after a mixed batch of U.S. housing sector data released earlier in the session.

The U.S. Commerce Department said housing starts slumped 9.0% to 1.047 million units the previous month from August’s total of 1.150 million units, reviewed from the initial 1.142 million.

Analysts had anticipated an increase of 2.5% from the initial number to 1.175 million in August.

Temporarily,building permits increased  6.3% to 1.225 million units the previous month from 1.152 million in August. Economists had predicted a 0.9% increase to 1.165 million units in September.

Compared to the euro, the Canadian dollar was higher, with EUR/CAD is declining  0.53% to 1.4317.

On Additional News

On Thursday, the Australian dollar changed lower compared to its U.S. counterpart, following  the release of mixed Australian employment data, while the New Zealand dollar held steady ahead of U.S. economic reports  scheduled later in the day.

AUD/USD declined 0.70% to 0.7669, off the more than one month peak of 0.7734 hit suddenly.

On Thursday, the Australian Bureau of Statistic reported that in September, the number of working people declined by 9,800, disappointing expectations for an increase of 15,000.

The total of employed people drop by 8,600 in August, whose number  was revised from an earlier estimate of 3,900 slides.

The report also presented that Australia’s unemployment rate stayed unaffected at 5.6% the previous  month, compared to expectations for an increase of 5.7%.

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Aussie Recover in Asia after Reserve Bank of Australia Minutes of Meeting

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On Tuesday, the Aussie recovered in Asia after remarks from the central bank chief and the  release of the minutes from the October review said that updated predictions on jobs and inflation will aid any policy decisions in the upcoming board review, noting upbeat mining data.

AUD/USD traded at 0.7664, up 0.45 percent, although USD/JPY adjusted at 103.85, down 0.05%. GBP/USD  presented strength in Asia, trading up 0.50% to 1.2245. Also of note were statements from Fed Vice Chair Stanley Fischer stating  the central bank is “very close” to job and price goals that should generate a rate hike.

Previously, Reserve Bank of Australia Governor Philip Lowe said Tuesday 3rd quarter inflation figures will be an essential  indication of inflation expectations, which have clearly dropped recently and there is a need to guard against them declining more.

“Of course, one of the key influences on inflation expectations is the actual outcomes for inflation. We will get an important update next week with the release of the September quarter CPI,” Lowe said at a conference in Sydney. CPI data are due Oct. 26.

Somewhere else, 3rd quarter consumer prices increase 0.2% QoQ in New Zealand, more than the flat result seen, while the YoY pace presented a 0.2% increase, higher than the 0.1% seen. NZD/USD traded at 0.7179, up 0.60%, after the data. Last week, RBNZ Assistant Gov. John McDermott  stated the bank expected this quarterly CPI to show inflation bottoming out and it would increase from here. The RBNZ will next review the official cash rate Nov. 10 and expectations are for a 25 basis points reduction to 1.75%.

The U.S. dollar index, which gauges the greenback’s strong point against a trade-influenced basket of six major currencies, drop 0.20% to 97.66.

Suddenly, on Monday,  the greenback stayed lower against the other major currencies, after the release of downbeat economic reports from the U.S. diminished optimism over the strength of the economy, although the dollar still stayed within close distance of a seven month high.

The Federal Reserve of New York stated its Empire State manufacturing index  drop to -6.80 in October from -1.99 the prior month. Analysts had anticipated the index to increase to 1.00 this month.

Another report presented that U.S. industrial output  increased by 0.1% the previous month, below expectations for an increase of 0.2%.

However, manufacturing production surge by 0.2% the previous month, compared to predictions for a 0.1% increase.

Earlier Monday, final data presented that the euro zone consumer price index increased 0.4% in September, corresponding to expectations. Year-on-year, consumer prices increased 0.4% the previous month.

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