Market Watch AU – 8th December 2023
The AUDUSD has rebounded from the lows of 0.65-cents back above 0.66-cents, spurred on by a shift in market sentiment that leant towards ‘risk on’ in the northern hemisphere sessions along with a softer US-dollar as a consequence. During our session we saw the release of local trade data that showed a slight increase in exports and declining imports, which is a favourable scenario for the central bank, but the release of China Trade data showed a decline in imports and as a major trading partner for Australian raw materials, this rattled traders and saw sellers win the session. The next important data release for investors will be US Non-farm Payrolls tonight and with initial jobless claims rising, this points to a softer employment market expected in this report. No data releases for Australia today so positioning will be attentive to tonight’s US NFP. The Short term scenario is a little more balanced with the Aussie above 0.66-cents, but likely to find some resistance initially at 0.6630’s. Support emerges in the 0.6565/80 zone, should we should we stray from a bullish configuration to close out the week.
Wall Street indices all rose today with the Nasdaq surging higher on the back of mega-tech stocks responding to fresh optimism over AI. The DJI was up +0.2%, the S&P500 gained +0.8% and the Nasdaq jumped +1.3% by close. Australian shares look to open the session on the back foot, pressured by energy sector shares on the fall in oil, but downside should be limited with the confidence rally seen on Wall Street overnight.
Gold prices have held on to their gains, as investor position and await the release of the US Non-farm Payrolls out tonight.
Copper prices were up by the end of the session, aided by a softer US-dollar and a lift in China export data which helps this base metal. Iron Ore futures on the Dalian exchange pushed higher after the Chinese export data supported local demand, along with positive updates from local producers.
Brent Crude Oil prices dropped as traders contemplated a reduction in the demand outlook for China and the US, the worlds leading oil consumers.
Open today 0.6602
Yesterday’s Range 0.6526 / 0.6620
Open today 0.6170
Yesterday’s Range 0.6113 / 0.6193
Yesterday’s Range 1.0656 / 1.0706
Yesterday’s Range 0.6065 / 0.6120
Yesterday’s Range 4.6785 / 4.7359
Yesterday’s Range 0.5200 / 0.5249
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