Market Watch AU – 4th January 2024
The US-dollar overnight, pared back earlier gains after the US Fed minutes of the December meeting, though a seemingly dovish take on the latest statements. The AUD has continued its new year slide and hit a low of 0.6702 overnight in the face of a stronger US-dollar. During Asia session we await the release of the China Caixin Services PMI for December to offer some direction to the AUDUSD intraday. Further interest will lie in the US data releases tonight, as markets gear up for the US Non-farm payrolls on Friday. The initial support level is seen at 0.67-cents with further weakness allowing a move to 0.6680’s behind, while on the flip side, if we see some gains resume from current levels, next level of supply should be seen on a move to 0.6780/90’s and 0.6810 behind offering some resistance. Momentum though, would suggest the downside is still the favourable.
Wall Street indices declines for another day as profit taking continued after a stella 2023 performance. The DJI posted a loss of -0.4%, while the S&P500 lost -0.4% and the Nasdaq dropped -0.8% for the day. Australian equities are set to start the day lower, as gold miners weigh on the ASX and investors comb through the latest minutes of the US Fed meeting released overnight.
Gold prices gave back recent gains today as the Minutes form the December Fed meeting added to the uncertainty of when they will reduce the cost of borrowing through rate cuts. Spot Gold was down 1% at close.
Copper prices fell against the back drop of stronger US-dollar moves and uncertainty of demand from China this year. Iron Ore futures climbed on expectations that Chinese authorities will bolster economic stimulus, as pre-Lunar New Year holiday restocking commences.
Brent Crude Oil prices were up for the day, adding over 3% for the session, after disruption at Libya’s main oilfield add to rising fears of geopolitical tension throughout the Middle East.
Open today 0.6732
Yesterday’s Range 0.6702 / 0.6771
Open today 0.6247
Yesterday’s Range 0.6219 / 0.6276
Yesterday’s Range 1.0770 / 1.0828
Yesterday’s Range 0.6144 / 0.6185
Yesterday’s Range 4.8052 / 4.8414
Yesterday’s Range 0.5306 / 0.5365
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