17.09.13

Reserve Bank of Australia meeting minutes leaves the rate at 2.5% going forward, a record low. Following the release of the minutes the AUD gained slightly on the news although trading bought it back to the opening price. AUD/USD was trading at 0.9318 with a high of 0.9333 and a low of 0.9283 so far. The USD/JPY is trading at 99.23 with a high of 99.35 and a low of 99.00 so far.

The NIKKEI closed at 14311.70 down 93.00 points or minus 0.65%

European markets opened up this week following Lawrence Summer’s withdrawal from the candidacy to become next FED Chairman. The Euro Zone is still getting shaky news as regards recovering from the downturn. Spanish and Greek unemployment remain high, and the tourism boost of the summer months is coming to an end for both. French public debt is still on the rise, standing at close to two trillion euros. Central Europe, Germany in particular is leading the recovery with low unemployment rates, and a positive outlook. Sunday sees elections taking place in Germany, and the economy is a hot topic in the run-in.

The FTSE100 closed at 6605.76 down 17.10 or minus 0.26% while the DAX closed at 8598.62 down 14.38 or minus 0.17%

American Consumer Price Index figures are out today ahead of tomorrow’s big news, the expected taper. Expectations of a reduction in bond buying to the tune of $10 billion per month have been widely reported. Tomorrow will see a high volume of trading around the time this FOMC meeting ends. EUR/USD was trading at 1.3348 with a high of 1.3357 and a low of 1.3325 so far. The frontrunner to take over Ben Bernanke’s position as Federal Reserve Chair is now Janet Yellen.

The DOW closed at 15494.80 up 118.72 points or 0.77%

Have a nice day.