Tag Archives: Australia

CNBC Money in Motion Trade:

By Andrew Busch | Published: August 30, 2011

Friday on the show, we went back to a trade recommendation I made back on July 15th. Start at 2:45. (If you want to understand why Irene was not a major currency factor, then start at 1:25 and skip the Jim Cantori part on Hurricane Irene.)
Here were the details of the trade:
TRADE
SELL AUD/NZD @ 1.2650
TARGET = 1.2150
STOP LOSS = 1.2825

• The trade was a bet on softening China PMI numbers (negative for Australian exports) and a bet on interest rate differentials between Australia and New Zealand narrowing in favor of New Zealand. Both happened! … …READ MORE

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Trading the Chinese Data

By Andrew Busch | Published: January 20, 2011

Today, the Chinese released their GDP, CPI and PPI. Yesterday, it was leaked that the December CPI fell to 4.6% from 5.1%. This turned out to be accurate. Here’s the data from the National Bureau of Statistics:

2010 real GDP +10.3% vs 2009 revised +9.2%
2010 CPI +3.3%; 2009 -0.7%
2010 total fixed-asset investment +23.8%; 2009 +30.1%
2010 urban fixed-asset investment +24.5%; 2009 +30.5%
2010 inflation-adjusted total fixed-asset investment +19.5%
2010 industrial output +15.7%; 2009 +11.0%
2010 retail sales +18.4%; 2009 +15.5%
2010 inflation-adjusted retail sales +14.8%
2010 PPI +5.5%; 2009 -5.4%

The interesting aspect is the FX price action. … …READ MORE

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Australia Leads Where the Fed Needs To Go

By Andrew Busch | Published: October 6, 2009

Today in a somewhat surprise move, the Reserve Bank of Australia raised interest rates 25 basis points to 3.25%. The RBA becomes the first G20 central bank to officially begin an exit strategy from monetary easing to stem the global financial crisis. They had previously cut rates a record 425 basis points. RBA Governor Stevens said, “The risk of serious economic contraction has passed.”

Australia didn’t experience a contraction to the extent that Western countries have and is fortunately tied to economic stimulus in China. However, this tie comes at a cost as the massive Chinese loan stimulus has bled … …READ MORE

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