{"id":60856,"date":"2012-11-07T15:44:28","date_gmt":"2012-11-07T04:44:28","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2012\/11\/07\/what-happened-today-8\/"},"modified":"2012-11-07T15:44:28","modified_gmt":"2012-11-07T04:44:28","slug":"what-happened-today-8","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2012\/11\/07\/what-happened-today-8\/","title":{"rendered":"What Happened Today?"},"content":{"rendered":"

\n\tMax Ludowici<\/span> of 708 Capital is visiting clients today and as such is unable to produce his regular report. Max will return tomorrow. Chris Tedder<\/span> of Forex.com provides FNArena<\/span> with an assessment of market response to the US election, with the Obama victory unconfirmed at time of writing.<\/em><\/p>\n

\n\t
\n\tBy Chris Tedder<\/span>, Research Analyst FOREX.com<\/p>\n

\n\tThe US presidential election completely overshadowed the little amount of regional data out of Asia. USD was bolstered early in the session with initial results favouring<\/span> Romney, with investors’ attempting to anticipate a republican win and the possible end of QE3<\/span>. However, Obama fought back by winning a few key states, inducing what many are calling the final nail in Romney’s coffin, Ohio.  The result, USD has sold-off hard and investors are flocking to gold, hallmarks of an Obama win.<\/p>\n

\n\tPrice action is very jumpy<\/strong><\/p>\n

\n\tUSDJPY<\/span> was a big loser, which is not surprising given how sensitive this pair to movements in treasury yields. The pair pushed through a resistance level around 80.00, before creating a session low around 79.80. Late in the session, however, a flock towards risk currencies sent investors away from JPY<\/span>.<\/p>\n

\n\tXAUUSD<\/span> [US dollar gold] was also extremely jumpy throughout the session, which is to be expected given the pair is often referred to as the ultimate QE play. When the market expects the US Fed to turn on the printing press again, then gold is usually one of the biggest beneficiaries.  Investors typically start to shed USD in favour<\/span> of XAU<\/span>. Hence, the jumpy price action today in XAUUSD<\/span> as the market kept pace with the presidential debate.<\/p>\n

\n\tPrice action suggests Obama has done enough<\/strong><\/p>\n

\n\tOn the whole, the market is leaning towards Obama retaining the presidency.<\/p>\n

\n\tData watch<\/strong><\/p>\n

\n\tIn New Zealand, RBNZ<\/span> Governor Wheeler was on the wires, focusing his comments on the persistently and detrimentally high NZD<\/span>. The governor was very adamant that the kiwi was having an unfavourable<\/span> impact on NZ’s economy, particularly through trade exposed sectors, but added he can’t see a big NZD<\/span> sell-off. Nonetheless, in the current environment of caution over risk, investors dumped NZD<\/span> on the back of Wheeler’s comments.<\/p>\n

\n\tAUDUSD<\/span> feed off a late USD sell-off but is currently limited by a significant of downside pressure stemming from a still dovish<\/span> RBA<\/span>. EURUSD<\/span> ran away later in the session, after it appeared Obama had done enough and ECB<\/span> President Junker stated Greece’s parliamentary vote later in the week will pass, thereby securing Greece’s place in the Euro, at least for the time being.<\/p>\n

\n\tAll eyes will likely remain on the US as the election winds down. After which the market may turn its attention to the ramifications of said election, whilst also keeping an eye on the wrangling in Greece.<\/p>\n

\n\t
\n\tRepublished with permission from the publisher. The views expressed are the author's and not by association FNArena's<\/span><\/span>.<\/span><\/em><\/span><\/p>\n

\n\tFind out why <\/span><\/em>FNArena<\/span><\/i><\/span><\/span> subscribers like the service so much: "Your Feedback (Thank You)<\/a>" – Warning this story contains unashamedly positive feedback on the service provided.<\/span><\/em><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

A wrap of the day’s activity on the Australian stock market.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[6],"tags":[29,22,26],"acf":[],"_links":{"self":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/60856"}],"collection":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/comments?post=60856"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/60856\/revisions"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=60856"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=60856"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=60856"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}