Australian Stocks Rise For 10th Day

Australian stocks are higher again today on the back of strength in the resource and banking sectors. Stocks are rising because of interest rate cuts by the Reserve Bank of Australia and economic strength out of China. The interest rate cuts have boosted bank profits and there is strong demand out of China for Australia’s natural resources. The rate cuts are starting to boost business and investor sentiment in Australia. The ASX 200 is currently up 5.4 points to 4894.40. The Aussie dollar is at 1.0472 to the US dollar, relatively unchanged on the day.

Yen Continues To Trade Weak

The yen declined against most of its major peers again today. Global sentiment is risk on and investors are clamoring for yield. Global stocks continue to rise and former safe havens like the yen are being sold aggressively. The dollar is at 90.92 yen, up 20 pips on the day. The market is facing resistance at 91 and that is an area for forex and binary traders to watch closely. Japan’s Nikkei 225 is up 127.94 points to 10,994.66 on the back of the yen weakness.

All Eyes On The Federal Reserve

Investors are bracing for the latest announcement from the US Federal Reserve as it concludes a 2 day policy meeting. The Fed is expected to continue its purchases of $40 billion a month of mortgage bonds and $45 billion a month of US treasuries. Any changes to Fed policy will have a great effect on the markets.

New Zealand Dollar Weakens Before Reserve Bank Meeting

The New Zealand dollar is weaker today on expectations that the Reserve Bank of New Zealand will attempt to stem the currency’s strength. New Zealand’s economic data has been very strong recently and that has boosted the kiwi. The strength in the kiwi is seen as hurting the country’s exporters. The kiwi is currently down 22 pips to .8370 to the US dollar.

US Stocks Continue To Rise As Companies Beat Earnings Expectations

The S&P 500 Index closed at 1507.84, up 7.66 points, and the Dow Jones Industrial Average closed up 72.49 to 13,954.42. The Dow 30 are just under the key 14,000 level. Continued earnings beats are driving the market higher and the fear trade is that many investors are afraid of missing the rally. There has been no reason to sell the market and stocks continue to make gains. Among the companies that reported yesterday better earnings were Pfizer, Amazon, JC Penney, and Eli Lilly.

Oil Rises With US Stocks

Crude oil is gaining with US stocks as investors continue their optimism to the start of the new year. Analysts see China increasing their oil purchases by 7.3 percent this year. This is the largest gain since 2010 amid signs that the global economic recovery is in tact. Crude oil is currently trading at $97.56 and Brent is trading at $114.40.

Economic Data Today

1010 Italian 10 Year Note Auction 4.48% prev (Euro)
1315 ADP Non-Farm Employment Report 165k forecast 215k prev (USD)
1330 US GDP 1.1% forecast 3.1% prev (USD)
1530 Crude Inventories 2.583M forecast 2.813M prev (Crude Oil)
1530 Gasoline Inventories -0.108M forecast -1.738M prev (Crude Oil)
1915 US FOMC Announcement 0.25% forecast (USD, Gold, all markets)
2000 New Zealand Interest Rate Decision 2.50% forecast (NZD)
2350 Japan Industrial Production 4.5% forecast -1.4% prev (Yen)

As always be sure to check back for the latest update and good luck to all binary trades in trading the Fed announcement!