Press Release – CMC Markets
The Aussie market has shown signs of life today following indications of a US political compromise, and Australian capital expenditure data, which has increased the chances of a December interest rate cut.15.29 AEDT, Thursday 29 November 2012
Market shows signs of life
By Ben Taylor (Sales Trader, CMC Markets)
The Aussie market has shown signs of life today following indications of a US political compromise, and Australian capital expenditure data, which has increased the chances of a December interest rate cut.
The better than expected capital expenditure data came out today like a double edged sword. On the one hand the result showed an encouraging pick-up in private capital expenditure mainly in plant and equipment. While this is promising we also saw a falling rate of growth in future spending intentions with the greatest portion coming from mining.
The idea that we are nearing a peak in mining investment pushes the focus onto the RBA’s ability to sure up our economy through interest rate cuts. Today’s revelations saw our dollar ease slightly as the chances of a December interest rate cut increases.
The markets are still however going to continue to take their cues from the US fiscal cliff. The negotiations are engrossing investors at the moment and we will continue to yo-yo until some form of clarity is revealed.
Algorithms and high frequency trading have dominated the markets in the current low volume environment, this has meant any hint of fiscal-cliff propaganda has resulted in higher highs and lower lows intradays. Whilst the President and House speaker John Boehner seem to be portraying signs of compromise traders are however not buying into the PR talk in its entirety.