Australia’s Retail Sales Unexpectedly Decline
Australia’s retail sales data fell 0.1 percent in November compared to a forecast for a 0.3 percent gain. Consumers spent less on household goods and clothing. Economists say this points to the fact that the Reserve Bank of Australia’s interest rate cuts haven’t boosted confidence in the consumer. More cuts are likely needed.
Look For More Strength In The Kiwi Versus Aussie
The weakness in the Australian economy will weaken the Aussie against the New Zealand dollar in 2013. The New Zealand economy has been showing strong signs recently and the Australian economy has been showing weaker data. Binary options traders should look to play binary calls on the New Zealand dollar versus the Australian dollar. Watch the data that comes out and play the strength in the data from New Zealand over the weakness out of Australia.
The Aussie was last trading at 1.0494 to the US dollar, down 9 pips. The Aussie is still holding up relatively well against the US dollar. It’s proving to be very resilient in light of the weak data. A market that can’t go down with bearish news is very bullish. Binary options traders need to continue to play binary calls on the Aussie versus the US dollar until the trend changes. Right now the bull trend is very much alive and well.
Japanese Yen Continues Its Bounce
The Japanese yen bounced for a second day against the greenback, or US dollar. Traders are saying that the Bank of Japan’s stimulus is already priced into the market and profit taking is setting in. The yen needs fresh news to march higher. The Bank of Japan meets January 21-22 and that meeting will be closely watched by binary traders. For those traders that traded the binary calls on the yen, look to take profits and stay on the sidelines. Wait for fresh news before initiating another position.
Crude Oil Supplies Increase And Gasoline Demand Weak
The American Petroleum Institute (API) reported that crude supplies rose last week. Also Mastercard reported that gasoline demand last week was the lowest its been since July 2004. These are bearish fundamentals and the bulls have to be cautious. All eyes will be on the Department of Energy’s report today to see if it corresponds with the API’s. A build in crude supplies in the DOE report will be bearish for prices and binary traders should look to play binary puts after the release of the report. The report is released at 1030am New York time.
The Department of Energy further reported that they see US crude oil averaging $89.54 in 2013. US crude averaged $94.12 in 2012, close to the Department’s forecast of $94.26. US benchmark crude was last trading at $93.17, relatively unchanged the past few days.
Deutsche Bank Sees Rally In Iron Ore Then Bear Market
Deutsche Bank issued a bearish report on iron ore prices today. The firm forecasts iron ore prices to peak at $170 a tonne in the first half of the year and then drop to $120 a tonne. Iron ore was last trading at $158.50 a tonne. Deutsche Bank sees too much supply as the reason for the drop in prices later in the year.
This is further bearish news for the Australian economy if this forecast is proven correct. Iron ore is Australia’s number one export and is a big factor in the Australian economy. Binary traders need to watch the iron ore price closely in trading the big Australian mining stocks – Rio Tinto, BHP Billiton and Fortescue Metals.
US Government Grain Report Will Drive Grain Prices
On Friday the US Department of Agriculture will release its report showing US stockpiles for corn, wheat and soybeans. This is a big report and will create plenty of opportunities for binary traders. Crop progress reports have immense volatility after their release and I highly recommend binary traders to play this report. Volatility is a binary traders best friend. Right now traders are forecasting stockpiles to be revised downwards and we’re seeing buying ahead of the report. Traders are expecting a bullish report for prices. Many weather forecasters see last year’s drought in the US continuing into 2013 and further hurting crop production.
As always good luck to all Binary Traders and be sure to check back for the latest update!
