Market Watch AU – 11th December 2023
The AUDUSD opens the week on a cautious note, retreating on Friday after markets have pared back US rate cut expectations following the US Non-Farm Payroll release, that showed jobs growth of 199k, ahead of a 185k expectations. The building notion that the Fed will need to cut interest rates as early as March next year, has suffered a setback with this latest release and markets have quickly turned to the CPI release and Fed meeting, due later this week as a pivotal point for direction in the coming months. In other developments over the weekend , Australia has announced a tripling of fees on foreign purchases of existing homes. Also weighing on the Aussie pair is the growing signs of China deflationary pressures. Australian employment data due to be released this week will be our key local focus , while the central banks of Europe, UK and US are all set to meet and release their rate policy outlooks. For traders this week look for consolidation ahead of these major data pieces and events, looking to support at 0.6530’s and rallies exhausting at 0.6630’s.
Wall Street indices posted final session gains for the week as investors turned confident that the US economy was heading for a softer landing after the latest US Jobs report. The DJI was up +0.4%, the S&P500 gained +0.4% and the Nasdaq jumped +0.5% by close. Australian shares look to open the week higher drawing confidence from the Wall Street moves and their employment data, but investors will be anticipating the release of Australian employment later in the week, to assess the course of future rate hikes by the RBA.
Gold prices declined back below the $2000 as US Treasury yields rallied post the US employment numbers with traders trimming their outlook for rate cuts next year.
Copper prices rallied higher on Friday with a lift in China demand for the base metal. Iron Ore futures on the Dalian exchange traded higher again on the back of China demand and expectations of further economic stimulus. Data over the weekend will likely dampen the enthusiasm today.
Brent Crude Oil prices saw session a rise of more than 2%, however over the week was another weekly decline as lingering oversupply concerns plunder this market.
Open today 0.6580
Yesterday’s Range 0.6559 / 0.6619
Open today 0.6121
Yesterday’s Range 0.6104 / 0.6178
Yesterday’s Range 1.0683 / 1.0757
Yesterday’s Range 0.6104 / 0.6138
Yesterday’s Range 4.7125 / 4.7435
Yesterday’s Range 0.5232 / 0.5263
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