ZuluTrade Blog

US Election Day today..Big rally in Aussie...

Market View | Tuesday, November 6, 2012 2:15 AM GMT

Good Morning,


 - US Election Day today

- Big rally in Aussie after the RBA left rates unchanged. AUDUSD rose to 1.0436 and EURAUD extended the losses down to 1.2770. Other currencies remained mostly in yesterdays ranges.

- Stocks: Nikkei -0.36 %, Hang Seng -0.26 %, Shanghai Composite -0.92 %, Dow Jones +0.15 %, S+P500 +0.22 %

- European Central Bank Vice President Vitor Constancio downplayed a report that the Bank of Spain violated collateral rules when it assessed the quality of assets pledged by Spanish banks in return for ECB loans.

- European Central Bank Governing Council member Ewald Nowotny said the ECB won’t automatically buy bonds if a country asks for aid. * “I consider it sensible to demonstrate that we have a powerful tool, which we should use if needed” * ECB should look at Governing Council voting rules * “I could imagine that the support of the German population increases as a result” of giving nations that shoulder a bigger burden a bigger say * Interview with Handelsblatt

- EU Economic and Monetary Affairs Commissioner Olli Rehn, speaking at a meeting of Group of 20 finance chiefs in Mexico City, said that a deal must be made at a meeting of European finance ministers in Brussels on Nov. 12. An European G-20 official speaking before Rehn and on condition of anonymity cast doubt on the prospects for that deadline, saying officials may fall short.

- Greek workers begin a 48-hour strike on Tuesday to protest against a new round of austerity cuts that unions say will devastate the poor and drive a failing economy to collapse.

- German Chancellor Angela Merkel says Germany has “many advantages from the euro, so we have to show some solidarity.” * The euro region has achieved some success in fighting its sovereign debt crisis, Merkel says at a party rally of her Christian Democratic Union in the Lower Saxony town of Bad Fallingbostel * The competitiveness of some troubled euro region countries has increased and unit labor costs have dropped, Merkel says

- Group of 20 finance chiefs pledged to move toward more flexible currency regimes while highlighting policy makers’ commitment to avoid competitive devaluations asglobal growth sours. “We reiterate our commitments to move more rapidly toward more market-determined exchange rate systems and exchange rate flexibility to reflect underlying fundamentals,” finance ministers and central bankers of G-20 nations said in a statement yesterday after a two-day meeting in Mexico City.

- IMF Lagarde said today that “time is of the essence” for the U.S. to avert its fiscal cliff. “It will be important for the U.S. to address quickly the so-called fiscal cliff. Time is of the essence, and significant policy uncertainty in Washington must be addressed,” Lagarde said in a statement at the Group of 20 nations meeting in Mexico City. “Japan faces similar challenges, and must also quickly articulate a course of action. Europe, in turn, remains a challenge globally and must deliver on its policy commitments to assure a more stable euro zone.”

- Federal Reserve Bank of San Francisco President John Williams said the central bank may buy more than $600 billion in bonds by extending its third round of quantitative easing well into next year.

- Australia's central bank skipped a chance to ease and held rates at 3.25 percent on Tuesday citing higher inflation at home and an improved global background. "At today's meeting, with prices data slightly higher than expected and recent information on the world economy slightly more positive, the Board judged that the stance of monetary policy was appropriate for the time being," RBA Governor Glenn Stevens said after the bank's monthly policy meeting.

 - Australia Data Recap     Period Survey Actual     Prior

* House Price Index qoq    Q3    1.0 %   0.3 %    0.6 % rev

* House Price Index yoy    Q3    0.8 %    0.3 %  -1.9 % rev

* RBA Cash Target           Nov    3.00 % 3.25 % 3.25 %

- U.K. retail sales fell in October as weak consumer confidence caused Britons to curtail spending, the British Retail Consortium said. Sales at stores open at least 12 months, measured by value, dropped 0.1 percent from a year earlier, the London-based trade group said in an e-mailed report today. Sales rose 1.5 percent the previous month, the strongest in nine months.



US ISM News York Oct


Spain PMI Services Oct


Italy PMI Services Oct F


France PMI Services Oct F


Germany PMI Services Oct F


Eurozone PMI Services Oct F


Eurozone PMI Composite Oct F


Eurozone PPI Sep


Germany Factory Orders Sep


UK Halifax House Prices Oct


UK Industrial Production Sep


UK Manufacturing Production Sep


UK NIESR GDP Estimate Oct


Switzerland SECO Consumer Confidence Oct


Canada IVEY PMI Oct


Sweden Service Production Sep


Australia AiG Perf of Construction Index Oct


Have a good day  


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