Thursday, 15 Oct 2009

Positive American Data Boosts Risk Appetite

At the opening of the US markets today, investors received positive data regarding US employment and inflation. American Core CPI revealed that prices are indeed experiencing growth which suggests a modest growth in the American market. The weekly unemployment claims report also showed fewer people taking unemployment insurance than was expected.

This news, combined with the increase in risk appetite following Reserve Bank of Australia (RBA) Governor Glenn Stevens' comments about Australia's outperformance over other economies, helped drive many investors into the riskier currencies of Europe and the South Pacific. The AUD experienced a downfall after this morning's appreciation, but market spectators are saying it is only a correction as the market tests these new price levels.

In other news, Crude Oil prices have started climbing once more, reaching back above $75 a barrel. Gold and Silver, however, have seen set-backs in their trading as both precious metals saw their prices drop modestly starting this morning. Speculators are starting to say that commodities are reaching their peak for 2009 and may start coming back down in the near future.