What a volatile and nervous bunch traders and fund managers are. One day we read they are buying because of central banker “puts”, the next markets are down for the same reason.
I’m in the camp that says Bernanke will promise to do what needs to be done but that he can’t, or won’t deliver much more. Happy to be wrong but it seems to me Bernanke rules over a divided FOMC board. We’ll see.
Equally, the Spanish Prime Minister’s announcement that he wasn’t going for a bailout just yet while his regions continue to put their hands out for assistance weighed on Europe’s stock and bond markets. The FTSE was sold less heavily than its continental counterparts falling 0.42% while the DAX fell 1.64%, the CAC dropped 1.02% and Madrid fell 1.54%. Spanish bonds were up 16 point to 6.59% – not terrible but not good either.
AUD/USD: Gonski – the AUD has broken below the 200 day moving average and is now on target for our target of 1.025. Below that it has Fibo support at 1.0230/35 and then 1.0190. In time I think it goes much lower but I expect some support to come in in the next 50 points.
DATA: No one really cares about anything else except Jackson Hole but I’ll be watching private sector credit here in Australia today.
Here is today’s data and you can click here for the full week’s calendar. Please note that data coloured blue is important to me and that which is coloured red is important to everyone.
And here is how the markets closed at 6.30 this morning courtesy of AVATrade
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