Market Watch AU – 4th December 2023
The AUDUSD made broad gains on Friday following the positive PMI figures from China and then a softer read than expected from US ISM Manufacturing PMI’s, which remained unchanged for November, which left traders raising their expectation that the US Fed will cut rates in 2024, even though Fed Chair Powell was on the wires reiterating that it is premature to expect so. The AUDUSD gained 0.9% across the day and opens the week above 0.6650. Fighting resumes in Gaza so will be another factor in the global risk temperament to contend with as the AUD looks ahead to the final RBA Meeting for the year tomorrow. The latest polls have the Central Bank staying on hold but it will be a close call with them maintaining a hawkish stance in their Statement. Technically the AUDUSD is still trending higher, so analysts will be hoping for some consolidation of recent moves with support at 0.6575/85 on any pull back, however the RSI’s are rolling over and may suggest there is further correction into the support zone before the next advance resumes, but traders may see this as a buying opportunity rather than a deterioration of the uptrend.
Global and Wall Street stock indices finished the week higher as investor shrugged off comments from Powell who suggested policy makers were in no hurry to ease interest rates. The DJI ended higher by +0.8%, the S&P500 gained +0.6% and the Nasdaq ended just in the black up +0.6%. Australian shares are expected to open higher again today, following moves from Wall Street with a positive start to the week.
Gold prices rallied higher as investors digested Fed Chair Powell’s comment to the outlook for the Fed, reiterating that it was too premature to be looking at rate cuts in the cycle, plus also adding that the committee would be ready to raise rates further should that be necessary.
Copper prices closed higher on the LME, lifted by a softer US-dollar on the day, gaining 1.7% to close at $8611/ton. Iron Ore prices on the Dalian exchange posted gains of Friday to finish off the week.
Crude Oil prices had a roller-coaster of a day after OPEC+ latest move to try and support prices by additional supply cuts that will be due to take effect in January 2024.
Open today 0.6651
Yesterday’s Range 0.6600 / 0.6676
Open today 0.6195
Yesterday’s Range 0.6148 / 0.6210
Yesterday’s Range 1.0702 / 1.0762
Yesterday’s Range 0.6051 / 0.6138
Yesterday’s Range 4.7165 / 4.7586
Yesterday’s Range 0.5221 / 0.5257
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