Market Watch AU – 13th November 2023
The AUDUSD dropped 2.3% last week resuming pressure to the downside and opens today just below Friday’s close at 0.6360. The RBA Statement of Monetary Policy on Friday, suggested that inflation has passed its peak in Australia, but still remains considerably higher than expected. A Lift in equities offshore and a firm tone to commodities has helped the pair to consolidate in early trading for Asia. Data releases for this week out of Australia and US will shape directional flows and expectations, with Australia’s Wage Price index and Jobs data on Thursday and US CPI on Wednesday and Retail sales on Thursday, being most prominent. On the technical side, the AUDUSD looks to find initial support at 0.6350, while any advance will find supply at 0.6400/10, the old pivot level offering some resistance.
Global stocks and Wall Street equities rallied on Friday as mega-tech and growth stocks lifted amidst softening US Treasuries with investors looking through immediate headwinds and contemplating this weeks releases for inflation and forth-coming economic data. The DJI rose +1.2%, the S&P500 gained +1.6% and the Nasdaq closed higher by +2.1%. Following the offshore activities and the moves on global bourses, Australian shares are expected to open higher today, garnishing positive moves on commodities and heavyweight tech shares.
Gold prices drifted lower across the session as safe-haven demand continues to ease and Fed Chairman Powell’s comments earlier in the week intimated that US rates will remain higher for longer.
Copper prices were lower in the London session as investors take note of Fed Chairman Powell’s comments that held interest rates firm for longer. Iron Ore prices finished the week on a strong note with traders hoping for improved demand from Chana’s property sector.
Brent Crude Oil prices added 2% in the final session of the week as traders closed short position and Iraq added their support to OPEC+’s oil cuts.
Open today 0.6358
Yesterday’s Range 0.6339 / 0.6372
Open today 0.5895
Yesterday’s Range 0.5879 / 0.5904
Yesterday’s Range 1.0777 / 1.0812
Yesterday’s Range 0.5941 / 0.5972
Yesterday’s Range 4.6309 / 4.6494
Yesterday’s Range 0.5198 / 0.5213
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