Market Watch AU – 17th November 2023
The AUDUSD has retreated to the 0.6460 level after an initial boost to 0.65-cent plus, when the Australian Labour data for October was released and showed an additional 55k jobs for the month, well above expectations of 20k beforehand. On the US side initial Jobs claims for the week came in at 231k and were above expectations of 220k, cooling risk markets and favouring the US-dollar once again, but US Treasury yields are sliding and limiting the USD gains and tempering immediate outlook. Day traders for the Aussie will look to sell into any initial strength to 0.6500/20 and would need to hurdle 0.6550 if it were to reignite a bullish claim, while to the downside there should be initial support at 0.6450 intraday and then 0.6400/15 zone behind. No data releases for Oz today, will lean trader focus to US figures for Housing Starts and Building Permits (Oct) tonight.
Wall Street indices finished the day slightly lower, with a potpourri of disappointing corporate earnings forecasts and softer Treasury yields, book-ending the days moves. The DJI fell -0.4%, the S&P500 eased -0.1% and the Nasdaq dropped -0.1%. Following the offshore activities and the moves on global bourses, Australian shares are expected to open a little lower today, as commodity shares absorb underlying price pressures and a hawkish tilt on local monetary policy prevails, following a raft of strong economic data.
Gold prices traded back into positive territory for the session, with spot gold up 1.2%, as expectations for the US Fed to hold on any further hikes re-affirmed after the latest rise in US Jobless Claims for the week, cooling US Treasury yields and tempering the US-dollar.
Copper prices eased from six week highs as concerns re-emerged for demand out of China. LME Copper gave back nearly all its previous session gains, losing -0.4% for the day. Dalian Iron Ore prices ended the day lower after Chinese authorities intervened to arrest higher prices and also a weak report for the property sector yet again, with Home Prices down 0.38% for October.
Brent Crude Oil prices skuttled lower for another day , down -4.6%, as investors recognize concerns for global oil demand and weak eco data out of US and Asia.
Open today 0.6470
Yesterday’s Range 0.6461 / 0.6503
Open today 0.5971
Yesterday’s Range 0.5963 / 0.6030
Yesterday’s Range 1.0798 / 1.0846
Yesterday’s Range 0.5952 / 0.6011
Yesterday’s Range 4.6831 / 4.7327
Yesterday’s Range 0.5202 / 0.5251
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