A quiet Friday open ahead, FX focus on data out of Japan and eurozone - ASX futures up 9 points

European markets were firmer last night while US markets did little. As such, there's not a great deal to report on this morning with regard to the lead that the ASX 200 will take. Traders betting on upward momentum will continue to seek an ASX 200 closing level that remains well above buying support at 5,500 but we do have a lot of evidence of selling resistance at between 5,700 and 5,750 and therefore in the absence of a new trend, we can expect markets to be range-bound between 5,500 and 5,700 until we see a break and consistent closes above 5,750.

The June jobless rate, household spending and, most importantly, consumer price inflation data releases for Japan will be released at 9:30am Sydney time, so those foreign exchange client trading the yen crosses should be mindful of this. Later in the day we've got eurozone CPI at 7pm Sydney time.

In today's chart I've illustrated the US dollar versus the Mexican peso. The peso has been slugged due to falling oil prices and falling growth in Mexico as well as less attraction from global investors to emerging markets in general. And as the most-traded emerging market currency, the price of the peso is often savaged when traders pick up on a theme of rising interest rate expectations in the US, which has the effect of seeing money invested into emerging markets withdrawn somewhat. This chart illustrates the USDMXN pair, showing how many pesos can be bought with one US dollar - therefore a rising price indicates peso weakness. The Mexican central bank is attempting to intervene in the peso's fall; however, given the volume of trading in this pair and very limited reserves, opportunities where the central bank manages to temporarily halt the effect of selling (which is what happened last night) could prove nice entry points to see the trend only continue to resume.


Source: Rivkin, Saxo Bank

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

How to apply for the FGG IPO

As was the case with Future Generation Investment Company (FGX), Rivkin will be working with its broking partner CMC Markets in donating the broker stamping fees to charities associated with the investment company’s cause – in this case, youth mental health and homelessness.

With this in mind, we strongly urge you to follow the following steps accurately so Rivkin can add to the philanthropic nature of this IPO.

  1. Visit http://www.futuregeninvest.com.au/Global/prospectus.pdf to download and read the prospectus
  2. IMPORTANT: complete the Broker Firm Application Form on page 87 of the prospectus, this way we can donate the stamping fees
  3. Ensure you have sufficient funds in your Rivkin Securities stockbroking account to pay for the stock
  4. Enter the Broker Code 02662
  5. Enter the Adviser Code 0001
  6. Email your application to customerservice@rivkin.com.au or post it to:

Rivkin Securities FGG Offer
Po Box 1524
Double Bay 1360

Don’t have a Rivkin Securities stockbroking account? Open one now by emailing customerservice@rivkin.com.au (your Relationship Manager will call you back and pre-fill forms etc.) or phoning 1300 748 546. Our online brokerage is $11.00 or 0.11%, $9.90 or 0.11% for SMSFs that use Rivkin Super. PLUS we go the extra mile and donate non-core earnings like broking fees from this IPO to charity. You’re doing yourselves a favour and doing those in need a favour by getting involved.

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

Complex product warning

This article contains information about foreign exchange contracts, which are considered complex financial products. Please click here to read ASIC's foreign exchange trading article before considering an investment in foreign exchange contracts. 

This article contains information about CFDs, which are considered complex financial products. Please click here to read ASIC's "Thinking of trading contracts for difference?" document before considering an investment in CFDs.
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