Market Watch AU – 8th February 2024
The AUDUSD squeezed higher for the day, in part due to the pullback for the US-dollar, after tipping recent highs on the Dollar index. Analysts continue to monitor the flavour of the Fed rhetoric , looking for clues as to just when they will be ready to start cutting rates. Locally, investors are digesting the commentary from the RBA and in particular , Governor Michele Bullock comments, that departed from the expected dovish outlook and emphasized that current inflation is still too high. The AUDUSD continues meet with selling interests and layers of supply and we should expect day traders preferring to sell into strength at the moment. For today locally there is no major data as we look ahead to Bullock’s Testimony due tomorrow. China is due to release their CPI and PPI for January which will be watched by traders. AUDUSD should find initial support at 0.6470/80 zone and resistance to continue at 0.6535/50 area.
Wall Street stock indices traded positive today, as investors welcomed the latest earnings releases from major corporates, while keeping check on further clues from US Fed officials on hints for interest rate policy changes. The DJI was up +0.5% for the session, the S&P500 rose by +0.8%, and the Nasdaq gained +0.9% over the session. Australian shares are steady, as investors review comments from US Fed policy makers on their expectations for policy path.
Gold prices held on to previous days gains as investors look to Fed commentary for policy clues.
Copper prices gave back gains from the previous day, as Fed policy makers were remarking on expected interest rate levels later in the year . Dalian Iron ore futures traded firmer yesterday after Chinese officials signaled further support measures for their struggling economy.
Brent Crude prices strengthened further, after the US fuel inventories dropped further than expected , as well as ongoing tensions in the Middle East.
Open today 0.6520
Yesterday’s Range 0.6516 / 0.6540
Open today 0.6113
Yesterday’s Range 0.6092 / 0.6125
Yesterday’s Range 1.0664 / 1.0713
Yesterday’s Range 0.6048 / 0.6076
Yesterday’s Range 4.6961 / 4.7107
Yesterday’s Range 0.5161 / 0.5186
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