Market Watch AU – 31st January 2024
The US-dollar was mixed during the northern hemisphere session and gave back some gains against the G10 currencies after upbeat reports for US Job vacancies and consumer confidence. Australian Retail Sales for December surprised markets yesterday and suggested that they suffered from a Black Friday sale hangover. Today we await the release of the Q4 CPI release that is expected to show a slight contraction from last, exp 4.3% from 5.4% previous. The inflation numbers should guide the RBA’s upcoming monetary policy decisions and as such could sway the direction for AUDUSD. The pair looks to continue its familiar ranges trading around 0.66-cents. For day traders today, once again should find initial support at 0.6570/80 on any pullback, with rallies confined to resistance at 0.6630 initially.
Wall Street stocks traded in a mixed fashion for the day with a number of corporate earnings released along with solid US economic data as inventors position for the outcome of the Fed meeting this week. The DJI was ahead at +0.3% over the session, while the S&P500 was lower -0.1%, and the Nasdaq was lower -0.8% for the day. Australian shares are set to open down today as investors follow the global bourses ahead of the US Fed meeting later this week and hints for possible policy changes in the months ahead, plus the release of the Australian CPI later this morning.
Gold prices traded positive on the back softer US Treasury yields and weaker US-dollar, as well as continuing tensions in the Middle East.
Copper prices extended small gains as traders monitor demand outlook for China, as it continues to propose support measures for its property sector and broader economy. LME prices were up +0.9% into the close. Dalian Iron ore futures reversed lower for the day, as traders remain confident that China policy will be continue to come and add sufficient to support its ailing economy, but weak demand weighed on gains.
Brent Crude prices regained some of its previous day’s losses as the prospect of escalating tensions out of the Middle East and higher global growth, offset concerns over Chinese demand.
Open today 0.6602
Yesterday’s Range 0.6575 / 0.6625
Open today 0.6136
Yesterday’s Range 0.6106 / 0.6149
Yesterday’s Range 1.0758 / 1.0788
Yesterday’s Range 0.6069 / 0.6115
Yesterday’s Range 4.7286 / 4.7579
Yesterday’s Range 0.5194 / 0.5201
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