Market Watch AU – 27th November 2023
The AUDUSD closed higher on Friday and is maintaining a positive trend, but once again finds supply at the 0.6590’s a tough contender. A busy week for Central Bank data releases and senior committee members presenting at various forums. RBA Governor, Michele Bulluck will be speaking on a panel with BoE Deputy Governor Dave Ramsden at the HKMA-BIS Conference in Hong Kong on Tuesday. The RBA meets next week and has made it very clear that their decision will be data dependent and this week there are plenty of releases for the Australian economy, that could be instrumental in that decision. Consumer Price Index (CPI) for October, Retail Sales and Q3 capex are all due. For AUDUSD trading today, China releases second tier data that is unlikely to be a market changer, so continued attempts to clear selling interest through 0.6590’s will be closely monitored if it is to remain positive and target next levels at 0.6650/60. Support has trailed higher to 0.6875/85 initially and the risk mood has improved with China announcing further support for the ailing property sector.
Wall Street experienced a quieter session on Friday with low volumes and little decisive direction. The DJI ended up +0.3%, the S&P500 up just+0.06%and the Nasdaq up +0.1%. Australian shares are expected to open higher again today, with strong Iron Ore prices lifting enthusiasm for mining shares, while investors look ahead to the CPI release later in the week, for a hint of direction on interest rates after the RBA has clearly stated that it will be ‘data dependent’.
Gold prices held ground and closed out the week over $2000/oz as the US-dollar slips lower with US Treasury yields drifting, with investors raising hopes that the US Fed may be done with its rate hiking cycle.
Copper prices closed higher for the day, as demand from China and its efforts to support their property sector along with a slightly softer US-dollar, helped to underpin trading. Iron Ore prices on the Dalian exchange put on a fifth weekly gain, as property led demand outstripped concerns that the Chinese authorities campaign to monitor prices, was not enough to keep prices in check.
Brent Crude Oil prices fell for the day, as geo-political risks subsided and investors await the delayed OPEC+ meeting later this week.
Open today 0.6581
Yesterday’s Range 0.6550 / 0.6591
Open today 0.6080
Yesterday’s Range 0.6043 / 0.6093
Yesterday’s Range 1.0806 / 1.0857
Yesterday’s Range 0.6009 / 0.6027
Yesterday’s Range 4.6876 / 4.7143
Yesterday’s Range 0.5217 / 0.5240
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