Market Watch AU – 3rd November 2023
The AUDUSD has cleared supply through the 0.64-cent level and made gains to 0.6455 overnight before retreating to the 0.6430’s where it open in Asia today. A lift in global equities bourses and softer Treasury yields, has resulted from the market foreseeing that the US Fed may be done with rate hikes for now. Overnight the Bank of England also left their cash rate unchanged, but added that they did not expect to be cutting rates any time soon. US non-farm payrolls are due out tonight and will be closely monitored as a tighter labour market is an associated factor in the outlook for their interest rates. The AUDUSD has picked up a bullish tone, with global risk sentiment improving and the higher expectation that the RBA will raise rates next week at their November meeting, despite yesterday’s Trade numbers being somewhat less optimistic. Look for resistance at 0.6450/55 to stall the rallies ahead of 0.6500/10 and buying interest to support at 0.6410’s into the week end. In local data, Q3 Retail Sales ex Inflation is due for release but not expected to overly move the markets.
Wall Street adds to its previous day gains as investors foresee the conclusion to the US Fed rate hike cycle, plus the release of some upbeat quarterly earnings updates, adding to the bullish sentiment. The DJI rose +1.7%, the S&P500 gains +1.9% and the Nasdaq closed up +1.8%. Australian shares are expected to open higher again today, following the Wall Street mood and boosted by favourable commodity prices supporting the raw materials and energy sectors.
Gold prices turned positive for the day responding to the weaker US-dollar and easing Treasury yields, but attention to US Non-farm Payrolls should offer fresh cues.
Copper prices on the LME traded firm for the day as the US-dollar eased along with softer Treasury yields. Iron Ore prices traded another positive day amidst growing appetite for the raw material, however, nervousness over the China economy has kept gains in check.
Brent Crude Oil prices turned positive for the day as global risk appetite returned to the commodities complex.
Open today 0.6393
Yesterday’s Range 0.6398 / 0.6456
Open today 0.5846
Yesterday’s Range 0.5847 / 0.5917
Yesterday’s Range 1.0897 / 1.0944
Yesterday’s Range 0.6036 / 0.6076
Yesterday’s Range 4.6998 / 4.7275
Yesterday’s Range 0.5263 / 0.5291
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