Market Watch AU – 30th January 2024
The AUDUSD trades within familiar ranges of 0.6650’s to 0.6610/20 , garnishing some positive from the latest China authorities support to their economy, albeit in the face of one of the worlds largest corporate collapses for Evergrande property Group in China, after the Hong Kong court-ordered liquidation of its debt laden assets. The US is poised to become further involved in the Middle East turmoil after three US service personnel were killed in a weekend drone attack and injuring others. While the AUD has been holding ground against the US-dollar, one would think that these negatives are building and capping the global sentiment. Local data releases today will include Retail Sales (Dec) , expectations of -0.1% and will add to the RBA assessment for its interest rate path this year. Recent inflation metrics and a perceived tight labour market, have strengthened market consensus that the RBA will not move at the next meeting. For day traders today, once again should find initial support at 0.6550/55 on any pullback, with rallies to find continued supply through 0.6610/20 and resistance behind at 0.6630.
Wall Street stocks rose modestly to open the week which is heavily weighted with catalysts for the indices, with a number of megacap earnings releases, the FOMC meeting of the Fed and significant economic data releases. The DJI was just ahead at +0.6% over the session, while the S&P500 was up +0.7%, and the Nasdaq was higher +1.1% for the day. Australian shares are set to open higher today as investors follow the lead from Wall Street while monitoring the US Fed meeting later this week and hints for possible policy changes in the months ahead.
Gold prices traded higher on the back of rising tensions in the Middle East, as well as a slightly softer tone for US Treasury yields.
Copper prices flirted with small gains as traders remain cautious over demand outlook for China, as it continues to roll out support measures for its property sector. LME prices were up +0.3% into the close and negating Friday’s losses. Dalian Iron ore futures gained, as this market found traders more confident that China policy will be continue to come and sufficient to support its ailing economy.
Brent Crude prices dropped over a dollar as the focus on China’s property sector sparked demand concerns and the prospect of escalating tensions out of the Middle East.
Open today 0.6611
Yesterday’s Range 0.6570 / 0.6616
Open today 0.6133
Yesterday’s Range 0.6087 / 0.6144
Yesterday’s Range 1.0766 / 1.0812
Yesterday’s Range 0.6058 / 0.6107
Yesterday’s Range 4.7221 / 4.7542
Yesterday’s Range 0.5175 / 0.5203
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