Tag Archives: AUD

AUD – EVA Interlocking Jigsaw Rubber Gym Mats

The AUD rose another 0.4% on Tuesday. Yesterday’s data releases showed that the number of jobs fell for the first time in five months in May and that Business Confidence was unchanged for the month. Surveys showed that conditions are mixed across all industries with NAB forecasting higher unemployment by late 2014.

The effect on the price of EVA interlocking rubber gym mats should be positive. Especially with talk to the AUD reaching parity with the USD. Ezymats is a leading supplier of EVA interlocking foam rubber jigsaw mats. They are also know as gym mats, gymnastics mats, judo mats, crash mats, module mats etc. They have a variety of uses includes martial art, gymnastics, children’s play areas, gyms and other uses.

China manufacturing hits 5-month high

Manufacturing activity on the mainland hit a five-month high in May, but overall growth still contracted slightly in a suggestion that the outlook remains murky.

HSBC’s Purchasing Managers’ Index recovered to 49.7 in May from April’s final reading of 48.1. But the data is a touch below the 50-point level that separates a monthly growth in activity from a contraction, indicating that manufacturers actually experienced a slight drop in business.

China is a major manufacturer of EVA interlocking jigsaw rubber gym mats. Major supplier include Ezymats which has offices in Belmore Australia and Shenzhen China.

China’s exports & imports rose in April

China’s exports and imports both unexpectedly rose in April — albeit by a small margin.

Exports rose 0.9 percent from a year ago, following a contraction of 6.6 percent in March. Imports increased 0.8 percent in April, leaving a trade surplus of US$18.46 billion for the month. The data was a stark contrast to market expectation that trade would shrink further.

A key export from China is interlocking EVA jigsaw rubber gym mats. A major export / manufacturer of interlocking EVA jigsaw rubber gym mats is Ezymats. Ezymats has offices in Sydney Australia and Shenzhen China and is run by CEO.

AUD and Jigsaw interlocking rubber gym mats

The AUD dipped in Mondays trading, leaving it looking vulnerable this morning before a day of big data releases. Chinese manufacturing numbers, Australian Retail Sales, the domestic Interest Rate decision and accompanying statement all have the potential to move the market significantly in either direction. Recent data lends it hand to a downward bias, but we are trading the bottom of recent ranges. A terrible number from domestic building approvals on Monday was the catalyst for the selloff.

The price of jigsaw interlocking rubber mats remains stable for the time being.

China’s State Administration of Taxation Reform

China’s State Administration of Taxation (“SAT”) put into effect on broadening the scope of tax benefit for Small-medium sized Enterprises

In its official website, China’s SAT issued a bulletin on 18 April 2014 (Caishui [2014] No.34) that all the Small-medium sized Enterprises, in compliance with specified conditions, may enjoy the tax benefit on Corporate Income Tax (“CIT”). The relevant main terms are extracted as follows:-

1. The Small-medium sized Enterprises in compliance with specified conditions may enjoy a preferential tax rate of 20% on taxable income regarding CIT;

2. At the time of annual reporting of CIT, the preferential tax benefit policy will be adopted without the requirement of obtaining formal approval in advance from the competent tax authorities;

3. The Small-medium sized Enterprises with current and cumulative taxable income not exceeding RMB100,000, of which examining accounts is required and tax is imposed at a fixed rate, are applicable to this tax benefit policy;

4. Newly-established Small-medium sized Enterprises with the taxable income not exceeding RMB100,000 can also enjoy the said tax benefit as well

The measures will enable more Small-medium sized Enterprises to enjoy the tax benefit on CIT so as to release more liquid working capital for investing in future business development. This is sure to benefit EVA jigsaw mats and gym mats manufacturers. It will benefit the broader market for these and other products.

Market Watch

On Friday Market Volatility dropped to the lowest level since March 2013, when the AUD was at 1.05 against the USD. The gauge known as the VIX has retreated 47% since hitting a 14 month high in February.

US stock markets closed at a record high on Friday after a rise in new homes sales and a solid result in the Markit manufacturing purchasing managers index which increased to 56.2 in the month of May.

The Australian share market closed the week in positive territory, recovering from a mining led slump on Monday and Tuesday after iron ore dipped below $100/ton.

There is a public holiday today in the US and in the UK today which could leave the markets quite flat today.

There were some major political events over the weekend, firstly the election in Ukraine where Poroshenko has won the presidential election based on exit poll & the European parliament election was also held on Sunday. These elections did not really impact the markets.

Gold futures fell for the second time three days as a sign of recovery in the US economy curbed the demand & WTI Crude oil futures climbed to a five week high after US crude inventories tumbled.

AUD/USD faces the potential tailwind of a solid CAPEX report (Thursday) amidst a range‑trading and a heavy USD. News of a successful “transition” in the Australian economy towards non‑mining business investment will be supportive for further gains in AUD/USD this week. AUD crosses are likely to strengthen this week, particularly AUD/EUR, which may set a new high for the year. The one exception to AUD cross strength isAUD/CAD, which is typically weak in May.

Jigsaw mat and gym mat futures are stable.

Australian Dollar Stabilises after getting whipped

The AUD improved in our day time session, on the back of positive Chinese manufacturing PMI numbers. However in the overnight session the Aussie slipped back to lower levels that we saw in early trading. The lower Iron Ore price seems to be weighing on traders’ minds, and technical traders are still looking at sell signals in the AUD USD cross.

The dollar is higher today and seems to be stabilising which is good news for 40mm jigsaw mats.

Market Watch

The S&P500 rallied 0.81% overnight erasing yesterday’s declines as the FOMC Meeting Minutes continued its dovish rhetoric and said continued stimulus would not risk sparking a jump in the inflation rate. Inflation is expected to remain within its 2 percent goal. Policy makers continued to say that last month the economy is showing signs of improvement and the job market is slowly picking up.

Further reduction in the monthly bond purchase program is likely to continue and they re-iterated that interest rates will remain on hold for a ‘considerable time’ once it concludes the purchase program. U.S 10-year notes yields rallied 0.85% on the back of the positive FOMC announcement, the yield gap between 5 and 30 year Treasuries widening to the highest level in a month.

Gold futures declined 0.50% as traders saw less need for the save haven metal once the FOMC announced there was no threat of inflation.

WTI crude rose to a one-month high after a government report showed that stockpiles tumbled last week as imports dropped to a 17 year low.

Australian Dollar Lower

The posted its first back to back loss this month yesterday and fell against all the other majors after the RBA statement release. The daily decline of 1% was the largest since February as the AUD succumbed volatility and fear for the first time in 2 months. Local data coming out today includes Westpac consumer sentiment survey and wage price index for the March quarter from the Australian Bureau of Statistics.

The decline in the AUD shouldn’t have an impact on imported goods such as jigsaw mats in the short term. Should it persist or even go lower there could be an impact. For jigsaw mats already on the high seas there will be no change in pricing. In any case Ezymats will remain the supplier of the cheapest and best jigsaw mats on the market.

Market Watch

Overview of the Markets

The majority of European and American Equity markets finished in the green with only modest gains as the Dow Jones Industrial Average closed 0.27% at 16,491.31, just shy of historical highs. The NASDAQ and S&P 500 also rose 0.52% & 0.37% respectively. The markets rallied on the back of further signs the world’s largest economy is still improving as US building permits rose to 1.08m over the 1.01m forecast.

Gold remained relatively unchanged with only a $0.20 decline to close the week at US$1,293.40 while WTI Crude Oil jumped $0.52 up to $102.02 a barrel.

Elsewhere tension are still at boiling point in the Ukraine as Civil War starts to look more and more likely with fighting continues to rage as we draw closer to the May 25th presidential elections.

The AUD finished up for the third straight week and continued its push for a fourth straight month of gains, the longest rally in 4 years for the Aussie currency. With the absence of any major data on Friday the AUD drifted within a tight range to close almost unchanged. With a relatively quiet week locally.

Jigsaw mats pricing remains stable. They will remain so as long as the dollar is strong. It has been consistently been trading above $0.93USD. The 40mm jigsaw mat pricing is between $25.00 and $30.00 per mat depending on pricing.