Market Watch AU – 23rd January 2024
The AUDUSD lost 1.3% last week and is searching for some consolidation, with support levels in the mid-0.65’s. With major central bank meetings looming during the week , they are set to dominate the direction for intraday moves. With no tier one releases in Australia today, market direction is likely to be dominated by China market activity. The BoJ announces their rate decision today with no change expected and no impact on the Australian Dollar. Support arises at 0.6500/25 on any further deterioration, with rallies likely to be capped through 0.6600/15 initially.
Wall Street indices pushed further higher on Monday boosted by megacap and chip stocks. The DJI posted a +0.3% gain, while the S&P500 gained +0.3%, and the Nasdaq was up +0.4% for the day. Australian equities are set to ease from the open today, with miners weighed down by softer iron ore and copper prices nervous amid the expectations for demand from China.
Gold prices slipped back today with investors softening their expectations for a March interest rate cut from the Fed and rallying equity markets easing the demand for the safer haven of bullion.
Copper prices softened for the opening session of the week, as the market contemplated poor demand prospects from China. Iron ore futures steadied after its first weekly gain in three, with investors focusing on weakness in China’s steel-intensive property sector after the nation’s major lenders kept benchmark lending rates unchanged.
Brent Crude and US Oil futures settled higher for the day as traders saw oil supply tightening with conflict in the Middle East and Ukraine, along with extreme cold weather conditions in North America.
Open today 0.6670
Yesterday’s Range 0.6566 / 0.6614
Open today 0.6077
Yesterday’s Range 0.6072 / 0.6139
Yesterday’s Range 1.0768 / 1.0820
Yesterday’s Range 0.6035 / 0.6065
Yesterday’s Range 4.7251 / 4.7599
Yesterday’s Range 0.5168 / 0.5203
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