A relatively calm week ahead of Asia but volatility expected to remain high
International Trading
THE TECHNIQUE OF GIVING A GOOD MASSAGE
14 years ago
Sunday, September 19, 2010
, Posted by Usman Ali Minhas at 8:51 AM
Last week has witnessed major developments in the financial market after the Japanese intervention for the first time since 2004, by unilaterally selling their currency to curb the excessive gains. However this week will witness a rather weak flow of data yet the fluctuations in financial markets are expected to prevail especially with the FOMC decision on queue.
The Australian central bank will release September meeting’s minutes, where the bank decided to leave rates at 4.50% continuing to monitor developments closely; which is rather a policy followed by most central banks amid the ongoing uncertainty.
The fear over the global economic outlook and the decline of global demand pressures the RBA to drawback from the decision of raising interest rates, whereas the American economy is witnessing instability besides the drop in demand from China.
Mr. Stevens, has announced during the last meeting that with the growth rates approaching the expected path and the constant stability in inflation rates, the policy of interest rate stability is currently appropriate under present uncertainty in global economic conditions.
However, the increased spending in Australia as well as the great recovery in the mining sector supported by the Chinese demand for coal and iron ore, might force Mr. Stevens to return back to the policy of the series of interest rates with the start of 2011, mainly due to the inflationary pressures that may be caused by these factors.
As for the New Zealand economy, it will release this week growth data including the GDP for the second quarter, after it recorded growth rate of 0.6% during the first quarter besides the growth rate of 1.9% on the yearly level.
New Zealand's economy has witnessed expansion in growth for 4 consecutive years supported with strong exports, where the economy is in its second year of recovery after its worst recession in three decades.
On the other hand, the central bank of New Zealand has kept interest rates at 3.00% last week to end the policy of raising interest rates pursued during the last two meetings, and shows worries about global demand and the negative impact of the earthquake that hit New Zealand on the fourth of this month.
Visiter
Web stat
