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Australian Stocks Up Again On Positive RBA Minutes

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The minutes from the Reserve Bank of Australia said that lower interest rates are helping boost the Australian economy. The RBA further indicated that there’s room to lower interest rates if warranted. The RBA’s next meeting is March 5. Australian shares have reacted positively to the minutes with the ASX 200 up another 3.8 to 5067.20. The winning streak for binary calls on Australian stocks continues its course as the market trades at 4 year highs.

Aussie Dollar Stronger Against All Major Peers After Minutes

The Aussie dollar is higher today after the minutes showed that the RBA is not in a hurry to ease further. The RBA indicated that they see the previous interest rate cuts as working and having an effect on the nation’s economy. Most traders are not expecting a rate cut at the next meeting.

The Aussie is trading at 1.03233 US dollars, 96.738 yen and 1.22342 New Zealand dollars.

Kiwi Drops After China Destroys Milk Imports

The New Zealand dollar is weaker against its major peers after China destroyed some milk that New Zealand exported to the country. The biggest move in the kiwi pairs is in the Japanese yen. The kiwi is down .355 to 79.029. I still really like this pair for binary and forex traders. I see the NZD/JPY heading much higher.

Dollar Likely To Challenge 100 Yen

According to Forecast Pte, if the dollar breaches its recent high of 94.46 yen, it will likely challenge 100 yen. Their report said that 99.74 yen is the 50 percent retracement from its June 2007 high of 124.14 and the low reached on October 2011 of 75.35. I’m bearish on the yen and agree with their report. Binary and forex traders should continue to look for continued yen weakness, but in the meantime, expect the market to consolidate.

WTI Holding The $95 Level

Oil prices are weaker again after the International Energy Agency said that high oil prices are hurting the global recovery. WTI has significant resistance at the $98.65 level. If we break and close below $95, look for WTI to go lower. Binary options traders need to keep an eye on this level.

WTI Holding The $85 Level

Metals Prices Rebound

Gold and silver are rebounding as buyers step in. Gold bugs still feel that gold is an undervalued asset and is going much higher. Right now they need to defend the $1600 level and silver is trading at the critical $30 level. A lot will depend on data coming out of the US and Europe. Better economic readings are reducing the demand for safe havens. If the data continues to be strong, look for gold and silver to go much lower. If the data starts coming in weak, look for buying to come back into the precious metals space.

Gold is trading at $1613 an ounce, silver $30.01, platinum $1688.10, palladium $760.55 and copper $3.6865 a pound.

Draghi Speaks

ECB President Mario Draghi spoke yesterday and said that policymakers should refrain from making comments to drive currencies. I guess he doesn’t like it when anyone else but him does it. The euro had a muted reaction as he failed to say anything significant relating to the common currency

Economic Data Calendar

  • 1000 German ZEW Economic Sentiment 35.0 forecast 31.5 prev (EUR)
  • 1000 ZEW Economic Sentiment 35.5 forecast 31.2 prev (EUR)
  • 1330 Canadian Foreign Securities Purchases 7.21B forecast 5.62B prev (CAD)
  • 1330 Canadian Wholesale Sales (MoM) -1.0% forecast 0.7% prev (CAD)
  • 1500 US NAHB Housing Market Index 48 forecast 47 prev (USD)
  • 1715 Swiss National Bank Chairman Thomas Jordan Speaks (CHF)
  • 2145 NZ PPI Input (QoQ) -1.0% prev (NZD)
  • 2145 NZ PPI Output (QoQ) -0.9% prev (NZD)
  • 2300 Australia CB Leading Index (MoM) -0.2% prev (AUD)
  • 2300 Australia MI Leading Index (MoM) 0.6% prev (AUD)
  • 2350 Japanese Trade Balance -0.59T forecast -0.80T prev (JPY)

As always, good luck to all binary and forex traders today and be sure to check back for the latest updates!