Open today 0.6322
Yesterday’s Range 0.6271 / 0.6330
Open today 0.5821
Yesterday’s Range 0.5774 / 0.5829
Yesterday’s Range 1.0847 / 1.0884
Yesterday’s Range 0.5944 / 0.5999
Yesterday’s Range 4.5966 / 4.6364
Yesterday’s Range 0.5191 / 0.5225
There was no respite for the Aussie in yesterday’s trading, after RBA Governor Bullock said that the CPI data came in “pretty much where we thought” but she wouldn’t be drawn on whether it would trigger a change in policy. The AUDUSD pair traded to a yearly low at 0.6271 before a turn in the US-dollar returned buyers back to the risk sensitive pair. The EUR traded lower after the ECB decided to keep rates on hold for the first time in over a year, pretty much as expected. The US Q3 GDP expanded by 4.9%, better than the expected 4.2% and shows there is resilience in the US economy, sparking concerns that the Fed may consider a rate hike going forward. Focus for our day will be Australian PPI, then US Personal Consumption Expenditures tonight. After opening the session higher today, the AUDUSD could grind out further gains, trimming yesterday’s losses, though selling in to the strength is still the preferred strategy. A double bottom at the 0.6270/75 offers support and resistance around the 0.6400/10 remains
Wall Street stocks retreated once again, as investors registered mixed earnings results and US economy resilience prompted consideration for a ‘higher for longer’ scenario on US interest rates. The DJI fell -0.8%, the S&P500 loses -1.2% and the Nasdaq closed down -1.8%. Australian shares are expected to open on the defensive today as investors remain cautious as to the strong economic growth in the US signaling further tightening from the Fed.
Gold prices ground higher for the day, as the Middle East conflict continues and investors sway towards safer haven assets.
Copper prices on the LME eased, weighed down by a stronger US-dollar and headwinds in the Chinese economy and the pace at which they are offering stimulus support. Dalian and Singapore Iron Ore prices held steady for the day as expectations for Chinese demand will remain weak in the short-term and the extent of fiscal support the China authorities are willing to provide.
Brent Crude Oil prices eased, as the fear of wider spread of conflict in the Middle East calmed and the US outlook exhibited muted demand.
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