The AUDUSD looked to stabilize across the session yesterday, but markets are still looking ahead to the US Payrolls tonight. Yesterday’s Aust Trade data for June showed Exports were seen to retreat -2% for the month and a softer Imports decline of -4%. The AUDUSD seems decisively bearish with its decline this week, with traders sights now on the 0.65-cent support as some commodity prices and equities deteriorate further. A breach there would open up a retreat to the 0.6460 level, last seen in May. Any initial gains will be restricted to the previous psychological support at 0.66-cents. For our session today , markets will await the Statement of Monetary Policy release from the RBA, to register their assessment of the economy and an outlook on growth and inflation, providing some directional guidance for traders. The more influential release will be the US Non-Farm Payrolls tonight, which could offer a further boost to the US-dollar.
Wall Street indices closed near flat for the day, though after hours release of earnings for Apple and Amazon, who both beat expectations, should put a skip in the markets tonight when they re-open. The DJI lost -0.2%, the S&P500 closed lower -0.3% and the Nasdaq shed -0.1% for the session. Australian shares are set to mixed today with a bit of support from energy shares, though the broader commodity mix is capping a fervent advance.
Gold and lustre metals prices continue to lose ground as investors favour of US-dollars, ahead of the US Non-farm payrolls tonight which is keeping the market cautious.
Base metal prices gained as traders look to US jobs numbers tonight and digest the affects of a mining ban in Myanmar, the worlds third largest producer of tin. Dalian Iron Ore prices dropped further as sentiment dampens on China’s production curbs and recovery prospects for their property sector.
Brent Crude Oil prices returned to positive gains today, as supplies tighten from Russia and Saudi with further moves restrict production into September.
