Australian Binary Options News

Australian Stocks Rise With The Australian Dollar

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The Reserve Bank of Australia’s Governor Glenn Stevens said today that last year’s interest rate cuts are having an effect on the economy and that he has no plans to intervene in the currency market. Markets interpreted the comments as being interest rate neutral and that the RBA has no plans to adjust interest rates any time soon. After the comments were made, Australian shares and the Aussie dollar both rallied, ignoring the sell off in Europe and the US the day before.

Aussie Dollar Holds The Key 1.02 Level

As I said yesterday, the Aussie dollar’s next major support level was the 1.02 level in the AUD/USD pair.

Aussie Dollar Holds The Key 1.02 Level
As you can see, the market is having a nice rebound today against not only the US dollar, but against all its major trading peers. The AUD/USD is currently trading at 1.03125, the AUD/NZD at 1.23066, and the AUD/JPY at 96.173.

ASX 200 Posts Strong Gains

The ASX 200 closed this Friday up 38.0 to 5018.10, rebounding from yesterday’s dramatic losses. The market regained the key 5000 level. The positive comments from the RBA’s Glenn Stevens brought investors back into the market. If he’s so optimistic, why shouldn’t we be?

The market rallied right out of the gate and binary traders that kept buying hourly Calls and High options had a great day to end the week. Again, central bank policy makers are the chief influencers and drivers of prices in today’s markets.

Among major Australian stocks, BHP Billiton lost 30 cents to $36.87, Rio Tinto fell 58 cents to $66.72, and Fortescue rose 3 cents $4.83. In the banking sector, Commonwealth Bank rose 74 cents to $65.55, National Australia Bank gained 40 cents to $29.82, Westpac up 38 cents to $29.87, and ANZ rose 18 cents to $28.16. The biggest loser among Australian stocks today was Billabong. The stock lost 5 cents to 86 cents after reporting disappointing earnings and lowering its forecast.

All Eyes On Abe And His Pick For BOJ Governor

Japanese Prime Minister Shinzo Abe is in Washington meeting with US President Barack Obama. Any sign of approval from Obama for Abe’s economic policies, will weaken the yen further and boost Japanese stocks. Upon his return from Washington, Abe is expected to announce his pick to head the Bank of Japan.

Gold Rebounds Off $1550 Level

Gold futures have rebounded and are trading at $1586.60, up $8. The economic weakness that we’ve been seeing in Europe has signaled to the markets that the global recovery has still a ways to go. Monetary stimulus is still necessary from central banks and that will keep buyers coming into gold and buying the dips. That is what we have seen the past 2 days. I am still of the opinion that the gold bull run is ending and that the highs for the commodity are already in, but we will still see some bounces in the price of gold.

WTI Enjoys A Friday Dead-Cat Bounce; Likely Heading Lower Next Week

WTI has rebounded slightly in Asia, but in all likelihood is going lower next week. The market broke the key 50-day moving average and that is a bearish signal. The next major line in the sand for the oil bulls is the critical $92 level and if that price fails, look for $90. WTI is currently trading at $93.16, up 32 cents.

Economic Data Calendar

  • 0700 German GDP (QoQ) -0.6% forecast -0.6% prev (EUR)
  • 0700 German GDP (YoY) 0.1% forecast 0.1% prev (EUR)
  • 0900 German Ifo Business Climate Index 105.0 forecast 104.2 prev (EUR)
  • 0900 German Current Assessment 108.5 forecast 108.0 prev (EUR)
  • 0900 German Business Expectations 101.3 forecast 100.5 prev (EUR)
  • 1330 Canadian Core CPI (MoM) 0.1% forecast -0.6% prev (CAD)
  • 1330 Canadian Core Retail Sales (MoM) -0.1% forecast -0.3% prev (CAD)
  • 1330 Canadian CPI (MoM) 0.0% forecast -0.6% prev (CAD)
  • 1330 Canadian Retail Sales (MoM) -0.8% forecast 0.2% prev (CAD)
  • 1330 Canadian CPI (YoY) 1.0% forecast 0.8% prev (CAD)

The main data points today are coming out of Germany and Canada. The German Ifo Business Climate Index is very important and binary traders need to pay attention to that reading. Markets want to see a strong German economy, not a weak one. A weak reading will send the euro and European shares lower and vice versa. A strong reading will boost the euro currency and stocks.

As always, good luck to all binary and forex traders this Friday. Be sure to check back for the latest updates!