Low Trading Volume Likely To Govern Market
ACFX | Nov 26, 2015 04:38AM ET
The quarterly Australian Private Expenditure data has opened this trading day with quite a disappointing results, as it showed that the spending by the private businesses decreased to -9.2% against -2.8% expected.
This data completed this year’s set of the releases with all of them in the negative side and reached the worst results since February 2000, pulling the recently recovering AUD/USD pair to the downside.
“In an acknowledgment that the below-par economic growth of the past three years will persist, the Treasury’s top forecaster, Nigel Ray, said next month’s budget update would assume long-term growth of 2.75 per cent, down from about 3 percent” – the Australian Financial Review reports.
“A sharp slowdown in population growth since export prices peaked in 2011 means the economy won’t expand as fast as previously assumed. Lower growth could mean a future of fewer jobs and poorer investment returns. It would hit taxes, making it harder to pay for promised raises in defence, education, old age and welfare services” – Jacob Greber, observes in his recent article.
For now the probability of a further interest rate cut by the Reserve Bank of Australia in the near future is increasing, as fewer people will mean fewer employees and, therefore, an additional drop in productivity.
The European trading session today looks quite deserted regarding the economic releases, whereas the American markets are closed for the Thanksgiving holiday. Thus, the low trading volume will likely govern the market though the risk of volatility in case of any significant event enters the media headlines.
Despite some retracement yesterday, it seems the dollar index is continuing to persist on the way up, bouncing off the 99.75 support this morning and likely heading to retest the recent high of 100.20.
Gold, the traders’ favourite commodity after the oil is remaining to trade at five-year low, trading a descending triangle pattern, which could suggest a move lower might be ahead. Oil price, after encountering some volatility, has managed to keep the positions it gained on Monday on Saudi Arabia’s comments. The crude was trading above US$ 43.10 support and daily pivot point this morning. The quarterly Australian Private Expenditure data has opened this trading day with quite a disappointing results, as it showed that the spending by the private businesses decreased to -9.2 % against -2.8% expected.
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This data completed this year’s set of the releases with all of them in the negative side and reached the worst results since February 2000, pulling the recently recovering AUDUSD pair to the downside.
“In an acknowledgment that the below-par economic growth of the past three years will persist, the Treasury’s top forecaster, Nigel Ray, said next month’s budget update would assume long-term growth of 2.75 per cent, down from about 3 percent” – the Australian Financial Review reports.
“A sharp slowdown in population growth since export prices peaked in 2011 means the economy won’t expand as fast as previously assumed. Lower growth could mean a future of fewer jobs and poorer investment returns. It would hit taxes, making it harder to pay for promised raises in defence, education, old age and welfare services” – Jacob Greber, observes in his recent article.
For now the probability of a further interest rate cut by the Reserve Bank of Australia in the near future is increasing, as fewer people will mean fewer employees and, therefore, an additional drop in productivity.
The European trading session today looks quite deserted regarding the economic releases, whereas the American markets are closed for the Thanksgiving holiday. Thus, the low trading volume will likely govern the market though the risk of volatility in case of any significant event enters the media headlines.
Despite some retracement yesterday, it seems the dollar index is continuing to persist on the way up, bouncing off the 99.75 support this morning and likely heading to retest the recent high of 100.20.
Gold, the traders’ favourite commodity after the oil is remaining to trade at five-year low, trading a descending triangle pattern, which could suggest a move lower might be ahead. Oil price, after encountering some volatility, has managed to keep the positions it gained on Monday on Saudi Arabia’s comments. Crude was trading above US$ 43.10 support and daily pivot point this morning.
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