RBNZ to release its inflation expectation today.

ANZ Bank recently came out and said that it thought the RBNZ would be forced to put the official cash rate down twice starting with a rate drop in June and another in July. This saw the Kiwi Dollar fall off its recent highs 0.7560 and this morning weaker than expected Producer Prices data helped push the Kiwi Dollar to 0.7370 at 8.45am AEST. 

But it’s 1.00pm AEST I am waiting for today as the RBNZ will release its latest inflation expectation for the New Zealand economy and with recent economic data softening it won’t surprise me to see traders price in a dovish RBNZ inflation statement and the Kiwi Dollar fall even further. 

Members of LTG GoldRock can access the full report in Today's GoldRock Insider Report.

Traders question the private USA ADP Employment Report.

You will notice that on the Wednesday prior to the official US employment report the market gets to see what a private research institute called ADP thinks about job creation in the USA and how many jobs were created in the previous month. The US has been creating on average over 200,000 jobs per month for over 12 months now and the unemployment rate has come down to 5.5%. However last month the US economy created just 126,000 jobs which sent shock waves through the markets and put a big question mark on the economy.

LTG GoldRock Members can find the full report in Today's GoldRock Insider Report.

Company earnings help markets higher.

Company earnings in both the US and Europe helped stock markets finish mostly higher on Friday. US Durable Goods was the major headline economic news item for the day and the reading was weak overall but was not weak enough to see traders hit the sell button with any conviction. The technology heavy Nasdaq Index broke records again as traders cheered some strong tech stock earnings and buyers came for Microsoft buying it up by as much as 10%.

If you tried to pick a major theme for financial markets last week you’d likely struggle however there is more than enough news coming this week to give us something to talk about by the weeks end.

It appears the Greeks and European leaders made little progress on the debt and loan issues and this subject will no doubt simmer throughout the week with Greece due to pay some big bills next month and right now it has no money to make those payments.

LTG GoldRock Members can check this Morning's GoldRock Insider Report for the full run down on what will be happening in the markets this week and any upcoming Trades. 

$A lower and not expected to recover

$A lower and not expected to recover

Is One Kiwi Dollar about to be worth more than one Aussie?

We may have recently beaten the Kiwis (flogged them actually) in the Cricket World Cup Final but it’s the Kiwis who are winning the currency price race with one Kiwi Dollar now being worth the same as one Aussie Dollar.

This is the first time since June 1995 the AUDNZD has been this low.  It reached 1.0275 in June 1995 and since then has averaged around 1.2500 with a high of 1.3791 in March 2011. So why is the AUD dropping so far against the Kiwi Dollar? The answer is because the official cash rate at the RBNZ is 3.5% and the official cash rate at the RBA is 2.25% making a 1.25% interest rate differential between the two Central Banks. Graham Wheeler the RBNZ Governor won’t like the Kiwi overtaking the Aussie Dollar in value because it simply makes New Zealand less competitive on an international trade basis and with Australia being such an important export and tourism partner a high Kiwi Dollar is just not good for the Kiwi economy.

I am not sure too many Aussie’s will be able to bring themselves to go to New Zealand now $1 AUD ends up being worth less when they exchange it into Kiwi Dollars. Of course its great for Australian tourism and if you are worried about an influx of more Kiwis’ coming across the Tasman to live in Australia you should be. They are coming in droves now! 

650,000 Kiwi Citizens now live in Australia and the migration out of NZ to Australia has increased 40% in the last 10 years and is increasing every year. 650,000 Kiwis living in Australia is 12% of the NZ population. In comparison only 70,000 Aussies live in NZ, which is 0.03% of the Australian population.  With the AUDNZD now at parity and soon likely to be even lower the Government in New Zealand might just have to shut the exit door.

Stocks rally again creating a roller coaster ride.

It’s been a roller coaster ride for stock indexes in the past week with the Dow Jones rallying strongly on Wednesday post the US Fed statement only to see much of those gains erased on Thursday. Come Friday and it was off to the races again with the buyers returning to send European and US Stock Indexes to fresh new highs. Our Euro Stoxx 50 position is now nicely out in front and I urge you to consider holding this position for the coming months.

The FTSE 100 has broken above 7000 for the first time ever and provided price can stay above 6976 for the balance of the week Friday’s daily close at 7017 will be a new daily high, weekly high and monthly high. The continued rally on the FTSE this week will likely depend on oil, gas and commodity stocks holding onto their gains as the FTSE 100 is loaded with plenty of energy, gas and commodity based stocks.


Greece has been negotiating its debt arrangements with the Euro Area and German Chancellor Merkel told markets on Friday that payments to Greece could begin shortly so long as its debt reform arrangements are approved. If Greece does get approval for its reforms and money flows to Greece, which is highly likely in my view I suspect this will send stocks in Europe and the UK even higher again. Don’t miss these potential big moves!

Each day Andrew Barnett and the LTG GoldRock Team share their views on what is happening in the Forex markets to assist their LTG GoldRock Trading Community to earn profits from the markets on a daily, weekly, monthly and yearly basis. The main goal of any new investor in this market and to Learn to Trade professionally.

US Fed statement drives the US Dollar lower and stocks higher.

They removed the word “patient” from their statement however it wasn’t the wording in the statement that drove traders to abandon the US Dollar and jump into US stocks on Wednesday. It was the Fed’s adjustment of its expectations for the US economy when it comes to inflation, growth and interest rates.

Traders on Wednesday assumed the US Fed would raise rates later in the year rather than sooner however Janet Yellen really didn’t give a firm indication either way. She simply said the Fed had removed the word “patient” from its statement but said the Fed could make a decision any month to raise interest rates. She’s certainly frustrating the market with her Dovish but yet slightly Hawkish comments.

Clearly the US Fed doesn't see the economy strong enough just yet but it is ensuring the market knows that if the data does rebound strongly, inflation lifts and job creation continues it could act at any time. One part of the statement that was also responsible for the US Dollar diving on Wednesday was the fact that US Fed lowered its forecast of where the official cash rate will be in December this year. It lowered its forecast by 0.50%.

You can read the full report in Today's LTG GoldRock Insider Report. for more information about our trading community and how you can learn to trade go to www.ltggoldrock.tv