Market Watch AU – 2nd January 2024
The AUDUSD was trying to rally last week but ran into resistances in the high 0.68’s , which could be profit taking for the year end or perhaps signs of exhaustion to the latest gains. The coming sessions for the yearly open will help to reiterate the most likely pattern for now. The US-dollar was able to find session gains into the yearly close, but chalked up another monthly loss against its G10 peers. With local markets still in holiday mode and nothing of note of the eco release calendar for Oz, sideways and thin trading volumes are expected to continue to dominate this week. The initial support level revises to 0.6780’s as the market continues to favour entry on the dips and maintaining momentum into supply towards 0.69-cents.
Wall Street ends the day lower with all three indices finishing in the red, as US Treasury yields ended mostly higher. For the year though, it was a surprise for most investors, with the DJI posting a +13.8% gain, the S&P500 up +24.6% and the Nasdaq up +43.5% by year end. Asian equities are poised to start the year softer with Australian futures trading lower and Japan closed for a national holiday .
Gold prices experienced a slight dip into the year end, but remains to the favoured side for gains in 2024 as the US central bank is expected to turn dovish on rates, geopolitical tensions prevail and central banks become notable buyers.
Amongst the base metals, Copper prices finished the day lower on the LME as did Nickel, both losing -0.8% for the session. Iron Ore futures on the Dalian exchange continue to rise modestly yesterday as Beijing authorities remain encouraging to ongoing economic stimulus support.
Crude Oil futures slipped on lower demand, while the US is attempting to re-assure confidence back in the Red Sea. Brent and WTI both lower -0.2% for the day.
Open today 0.6807
Yesterday’s Range 0.6782 / 0.6846
Open today 0.6318
Yesterday’s Range 0.6305 / 0.6359
Yesterday’s Range 1.0751 / 1.0792
Yesterday’s Range 0.6134 / 0.6185
Yesterday’s Range 4.8334 / 4.8707
Yesterday’s Range 0.5332 / 0.5375
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