The AUDUSD found buyers on the dip to low 0.67’s yesterday, as traders looked to the headlines for more stimulus from China to support their economy following the Communist Party Politburo meeting and locally, expectations of a more upbeat budget surplus to be announced by the Federal Treasurer Jim Chalmers. The focus for Australia will remain on the Q2 CPI report tomorrow and the PPI and Retail Sales data on Friday. Also positioning ahead of the Fed rate announcement will influence the days activity, in as much as where the market expects Fed Chair Powell’s comments to land in his accompanying statement. Levels again to watch today for the AUDUSD, will be that initial support at 0.67-cents, with dips to 0.6680’s providing further interest, while the upside looks limited to 0.68-cents at present on any stretch higher.
Wall Street stretched its gains once again, driven by tech sector favour and earnings reports along with investor expectations for the Fed. The DJI was up 0.5%, the S&P500 closed higher 0.4% and the Nasdaq also closed higher 0.2% for the session. Australian shares look to open higher again today, with energy sector shares in the limelight, though investors remain cautious over local data releases and Fed interest rate announcements later in the week.
Gold prices were rangebound, as investors maintained expectations of the Fed to hike once more, though looking for clues as to policy going forward.
Copper prices finished the day up near 1%, though traders remain tenuous over the stimulus measures considered by China to bolster their economy. Iron Ore prices traded steady, as traders ponder concerns for China’s suffering property sector.
Brent Crude Oil prices posted gains once more for the session, driven by hopes for further China stimulus measures and rising gasoline demand in the US.