Tag Archives: USD

Market Watch and Gym Mats

The US dollar was the main mover with the Australian Dollar closing higher for the third day in a row. The US dollar index gave up 0.35% as it continued to drift lower from its fourteen month high. Also the Australian Dollar lifted by 0.35% against the NZ Dollar. The other Aussie crosses were little changed. Overall it the AUD has stabilised after falling somewhat over the last few weeks.

The USD’s drop was initiated by Federal Reserve member Bostic saying he expected only one more rate hike in 2018. He predicted three rate hikes at the beginning of the year, saying he was open to a fourth if the economy grew fast enough. However trade tensions have provided downside risk. Markets still believe two rate hikes are on the cards, in September and December.

Politics has returned to the fore with Malcolm Turnbull facing a real leadership challenge. The nuances of politics are for other platforms but this kind of instability can unsettle the currency. Typically a quick move to change leadership contains the damage but a protracted situation could destabilise the Aussie dollar.

Although the dollar has come down a bit over recent weeks it is yet to effect the price of jigsaw mats. The price of jigsaw mats is still stable and they are well priced. As Ezy Mats have large stock quantities in their expansive warehouses they are able to ride out any fluctuation in the currency market. The large range of gym mats also makes it easy to contain pricing.

Market Watch – Jigsaw Gym Judo Mats

AUD

The Australian dollar weakened slightly yesterday after survey showed slightly lower expectations of inflation after the government moved to repeal a tax on carbon. The August MI inflation expectations for the trimmed mean came in at 2.6% from 2.7% in July.

USD

Out of the US, weekly applications for unemployment aid climbed 21,000 to a seasonally-adjusted 311,000. Jobless claims figures, along with subdued inflation numbers, made it more likely the US central bank would leave rates on hold for a while. The US dollar is holding on to its gains against the three most actively traded currencies because, with these data disappointments, the outlook for the US is brighter than the outlook for the Eurozone, UK and Japan.

EUR

The latest in a batch of disappointing global economic indicators that have clouded the prospects for American growth lead the Eurozone’s recovery to an outright halt in the second quarter. Economic output in the 18 nation euro area stalled in the April and June period, after four quarters of minimal gains, Eurostat data showed. Fear of rising geopolitical tensions have added to the risks as the EU’s trade sanctions against Russia over the crisis in Ukraine, and the counter sanctions by Russia, are likely to crimp the Euro area’s sales of farm goods. The weak report on the Eurozone comes after news that Japan’s economy, shrank by a larger than expected 1.7 percent in the second quarter, or 6.8 percent at an annual rate.

GBP

The British pound steadied after sliding on yesterday as the Bank of England hinted that markets may have to wait longer than they thought for a long awaited hike to its main interest rate. Bank of England set to sit tight as low wage inflation offsets strong British output and falling unemployment, and chance of an interest rate rise in 2014 and perhaps even the first quarter of 2015 appears to be on the cards

NZD

The New Zealand dollar traded better than expected with data showing weaker economic reports in the US and Europe, enhancing the lure of local assets and pushing the kiwi to touch a 10 day high overnight. The New Zealand dollar jumped higher after data yesterday showed second quarter retail sales rose more than expected, reinforcing expectations interest rates will resume their upward path next year.

AUD bouncing around

The Australian dollar traded steadily on Friday, after sustaining sharp losses a day earlier. The RBA lowered its forecast for GDP of 2-3% in the year through June 2015, down from 2.25-3.25% in the May projection. The RBA added that the unemployment rate was likely to “remain elevated for some time”. The RBA statement also took note of the high value of the Australian dollar, which has gained about 6% since February.

China’s growth increases to 7.5% in Q2

The mainland’s economy grew 7.5 percent between April and June from a year earlier, slightly above expectations and quickening from the 7.4 percent pace in the first quarter, reinforcing hopes that a recovery is under way after a flurry of government stimulus measures.

Other data released alongside the gross domestic product report showed factory output rose 9.2 percent in June from a year ago, beating expectations of a 9.0 percent increase.

Fixed asset investment, a mainstay driver of the mainland’s economy, climbed 17.3 percent in the first six months compared with a year earlier, above forecasts for a 17.2 percent rise.

Retail sales rose 12.4 percent in June from a year ago, in line with analysts’ predictions.

China’s economy got off to a weak start this year as unsteady foreign and domestic demand dragged on exports, investment and industrial output, prompting the government to announce a slew of stimulus measures.

Many economists believe more policy support may be needed in coming months to sustain any recovery, particularly if the already cooling property market begins to deteriorate more sharply.

Market Watch

Share markets from Asia to the US slumped last week on the back of credit risk aversion and disappointing earnings. The Dow Jones lost its YTD gains in one session and the S&P 500 shed 2.3% in recording its worst week since 2012.

The ASX dropped 1.36% on Friday to close at 5556 after hitting a 6 year high earlier on in the week. UK and European shares lost ground in the wake of a lower than forecast manufacturing data reading from China.

Gold rose by 0.9% on Friday to close at $1294/oz after a disappointing jobs report from the US. More on that in the USD section below.

Oil saw its biggest weekly drop in seven months after the refinery utilisation rate dropped for the first time in 5 weeks. WTI finish 0.3% lower at $97.88/bbl.

The AUD lost close to 1% last week as economic data was softer than expected, disappointing investors after a largely positive previous week. Building Approvals dropped 5%m/m and the Producer Price Index fell 0.1%, just the second negative reading in four and a half years. This lower than expected inflation gauge opens the way for a further rate cut should Glenn Stevens deem it necessary. Retail Sales data released today ahead of the RBA meeting tomorrow should provide some interesting reading.

The price of EVA jigsaw rubber gym mats is stable. Ezymats is still the market leader both in Australia and globally though their China office.

Market Watch – Interlocking EVA Jigsaw Rubber Gym Mats

US stocks rose over the weekend, the S&P500 rising 0.30% higher to 1,936.15. The equities benchmark nearly erased its gains in the final hour of trading amidst potential uncertainty surrounding the conflict in Iraq. Islamist fighters in Iraq extended their advance, highlighting a risk to oil supply from the OPEC region and raising fears of another gulf war brewing.

Australian shares fell 0.44% on Friday, the biggest drop since the start of February following from the insurgent attacks in Iraq. This geopolitical risk added pressure to weakening spot price of iron ore and coal with the exception being energy and gold stocks which benefited from the tensions.

The spot price for gold strengthened 1.50% to $US1272.15 per ounce and the spot price for oil surged above $US114 per barrel for the first time in 9 months.

The Australian dollar is at seven month high despite geopolitical fears in Iraq. Over the past week it has been emerging as a “safe haven”. Australian dollar opened slightly lower today, pushed down by profit taking and lowering iron ore price. The dollar may see some downward pressure with the Federal Reserve policy meeting this week.

The price of EVA foam jigsaw interlocking rubber gym mats remains stable. Ezymats is a leading supplier in Australia.

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.