ASX 200 & Aussie dollar weaken, Apple tells us more about 'Watch', copper rises and ASX 200 futures rise 12 points

The ASX 200 slipped 78 points yesterday in what was a sharp response to the fall on Wall Street on Friday night, and in addition to this if the AUDUSD pair begins to trend downwards once again, Australian assets will become a little on the nose to foreign investors who might otherwise pick up our relatively-high-yield assets without necessarily having to endure the cost of hedging. The Aussie dollar, in this regard, will act as a leading indicator in that if it breaks down below buying support that sits above US$0.7650, then the ASX 200 equity market may well get dragged down with it. The caveat to this is that, if the RBA cuts again in April or May, then domestic demand will likely give Australian shares a boost given the increased importance on the spread between risk-free rates and equity dividend yields. The ASX 200 (orange) and AUDUSD (black) feature in today's first chart.

Two other stories worth a mention are Apple's new watch and the price of copper. Apple Inc. (AAPL, second chart) has eased back slightly after the investor exuberance that followed their quarterly earnings report released in late January, and we know that so much of their earnings was due to the sale of 74.5 million iPhone units during the previous quarter. Although Apple is set to continue grabbing market share from the traditional Android-based big-screen phone players, any CEO whose company is beginning to look like a one-trick pony (obviously I say that in regard to iPhone earnings relative to the size of Apple's total earnings, it still did sales revenue of US$21 billion for the quarter in other stuff!) would be super keen to add more hit products to its stable. So last night, Apple released further details about the 'Watch' along with a new MacBook and a content partnership with HBO for its Apple TV. With iPad sales coming off and cannibalism relating to users who are content with the larger iPhone 6+, diversifying income will be a big focus for 2015. Shannon Rivkin, who I sit next to and who purchases every new gadget that hits the market, is very excited about his upcoming purchase of the Apple Watch, whereas I loath the idea of wearing one. What do you think? Will it be a mass-market hit? Samsung's 'Gear' equivalent hasn't taken off, but will the die-hard Apple fans be flocking to stores to wrap a Watch around their wrist? Rivkin Trader clients can type in AAPL to monitor the share price of the world's largest company (by just a few hundred billion dollars at present...).

Today's last chart shows the price of Copper in percentage terms. It has had an incredibly rough ride since July 2011 and has been waiting for a pick-up in Chinese demand to set it up for a recovery. Traders increased bets last night on a pick-up in physical demand for copper after Chinese export numbers hinted that backward-looking inventory data might show that demand has picked up - copper rose 2.36% last night and Rivkin Trader members can trade COPPERUSAPR15 front month contract if they would like to take a view.

Today‚Äôs charts are taken from the Rivkin Trader platform. 30,000 global instruments available to trade including FX, commodities, index, ETFs and international shares. Trade Australian share CFDs from just $8 or 0.10%. Click here or phone 1300 748 546 to get your free $100,000 demo account.

Upcoming economic announcements: Chinese new credit data out at 10:50am, Chinese CPI & PPI out at 12:30pm, Swiss employment report at 5:45pm, all Sydney time.

comments powered by Disqus

DISCLAIMER: Rivkin aims to provide clear and simple information to those visiting our website. If any part of this disclaimer does not make sense, please phone Rivkin and ask to speak with a member of our Dealing and Relationship Management Team. Rivkin provides general advice, securities and derivatives dealing services and accounting administration services. Rivkin does not provide advice that takes into account your, or anybody else's, investment objectives, financial situation or needs. We strongly suggest that you consult an independent, licenced financial advisor before acting upon any information contained on this website. Investing in and trading securities (such as shares listed on the ASX) and/or derivatives (such as Contracts for Difference or 'CFDs') carry financial risks. CFDs carry with them various additional risks that differ from more simple securities such as fully-paid company shares. Some of these risks include not owning the underlying instrument from which a price is being derived, settling trades 'over the counter' with a financial institution rather than on a stock exchange, and using leverage to gain access to trades that may have a higher face value than your initial deposit. This risk of leverage means that it is possible to lose more than your initial investment. Our aim is to create more life choices for our clients, which means improving the wealth of clients throughout many market cycles by nurturing a relationship spanning many years. If you are not comfortable with your understanding of the risks involved before using a Rivkin product and service, please contact our office to seek further information or a Product Disclosure Statement, or make an appointment to sit with one of our friendly financial experts. It is in our interest for your Rivkin experience to be a rewarding and comfortable one. Rivkin is a trading name of Rivkin Securities ABN 87123290602, which holds Australian Financial Services Licence No. 332 802.