US markets lower, NZ rate cut drags down Aussie, ASX futures down 82 points

The market remains choppy, but at levels that are bringing more confidence to investors as we move further away from the panic period of late August. In today's first chart you can see the stark difference between the peak panic zone of the night of Monday 24 August and the weaker patch last week, where ASX futures seldom dipped below 5,000 points.

It may seem a subtle distinction, but I believe it's an important one - especially given short-sellers haven't been able to reignite fresh panic when levels have momentarily dipped below 5,000. It's for this reason that, while ever ASX 200 futures levels remain above those late August intra-day lows (4,733), I believe investors can breath a little easier. While investors wait it out, traders following the Rivkin Global product will have noticed our very tactical approach to finding the best short-term opportunities in this market. We've been actively trading both sides of the risk equation over the last month and have been getting it right - email customerservice@rivkin.com.au if you'd like to know more about Rivkin Global.

Today's second chart shows the Australian dollar getting dragged back down below US$0.70 this morning, after the Reserve Bank of New Zealand (RBNZ) cut rates. The rate cut was expected; however, it seems as though the determination of the Bank to continue to talk its currency lower sparked a lot of selling - see today's last chart, which shows this morning's price action. It seems as though growing confirmation that the Asian region is committed to a different interest rate cycle than that of the US is fuelling the downtrend in Asian and Australasian currencies.


Source: Rivkin, Saxo Bank

To view the Rivkin economic calendar and Global Markets matrix, members can click here.

This article was written by Scott Schuberg, CEO of Rivkin Securities Pty Ltd. Enquiries can be made via info@rivkin.com.au or by phoning +612 8302 3600.

Complex product warning

This article contains information about foreign exchange contracts, which are considered complex financial products. Please click here to read ASIC's foreign exchange trading article before considering an investment in foreign exchange contracts. 

This article contains information about CFDs, which are considered complex financial products. Please click here to read ASIC's "Thinking of trading contracts for difference?" document before considering an investment in CFDs.
comments powered by Disqus

DISCLAIMER: Rivkin aims to provide clear and simple information to those visiting our website. If any part of this disclaimer does not make sense, please phone Rivkin and ask to speak with a member of our Dealing and Relationship Management Team. Rivkin provides general advice, securities and derivatives dealing services and accounting administration services. Rivkin does not provide advice that takes into account your, or anybody else's, investment objectives, financial situation or needs. We strongly suggest that you consult an independent, licenced financial advisor before acting upon any information contained on this website. Investing in and trading securities (such as shares listed on the ASX) and/or derivatives (such as Contracts for Difference or 'CFDs') carry financial risks. CFDs carry with them various additional risks that differ from more simple securities such as fully-paid company shares. Some of these risks include not owning the underlying instrument from which a price is being derived, settling trades 'over the counter' with a financial institution rather than on a stock exchange, and using leverage to gain access to trades that may have a higher face value than your initial deposit. This risk of leverage means that it is possible to lose more than your initial investment. Our aim is to create more life choices for our clients, which means improving the wealth of clients throughout many market cycles by nurturing a relationship spanning many years. If you are not comfortable with your understanding of the risks involved before using a Rivkin product and service, please contact our office to seek further information or a Product Disclosure Statement, or make an appointment to sit with one of our friendly financial experts. It is in our interest for your Rivkin experience to be a rewarding and comfortable one. Rivkin is a trading name of Rivkin Securities ABN 87123290602, which holds Australian Financial Services Licence No. 332 802.