US markets lower, NZ rate cut drags down Aussie, ASX futures down 82 points

The market remains choppy, but at levels that are bringing more confidence to investors as we move further away from the panic period of late August. In today's first chart you can see the stark difference between the peak panic zone of the night of Monday 24 August and the weaker patch last week, where ASX futures seldom dipped below 5,000 points.

It may seem a subtle distinction, but I believe it's an important one - especially given short-sellers haven't been able to reignite fresh panic when levels have momentarily dipped below 5,000. It's for this reason that, while ever ASX 200 futures levels remain above those late August intra-day lows (4,733), I believe investors can breath a little easier. While investors wait it out, traders following the Rivkin Global product will have noticed our very tactical approach to finding the best short-term opportunities in this market. We've been actively trading both sides of the risk equation over the last month and have been getting it right - email if you'd like to know more about Rivkin Global.

Today's second chart shows the Australian dollar getting dragged back down below US$0.70 this morning, after the Reserve Bank of New Zealand (RBNZ) cut rates. The rate cut was expected; however, it seems as though the determination of the Bank to continue to talk its currency lower sparked a lot of selling - see today's last chart, which shows this morning's price action. It seems as though growing confirmation that the Asian region is committed to a different interest rate cycle than that of the US is fuelling the downtrend in Asian and Australasian currencies.

Source: Rivkin, Saxo Bank

To view the Rivkin economic calendar and Global Markets matrix, members can click here.

This article was written by Scott Schuberg, CEO of Rivkin Securities Pty Ltd. Enquiries can be made via or by phoning +612 8302 3600.

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