Market Update – 16th October 2023
Open today 0.6289
Yesterday’s Range 0.6287 / 0.6334
Open today 0.5901
Yesterday’s Range 0.5884 / 0.5934
Yesterday’s Range 0.5986 / 0.609
Yesterday’s Range 4.5965 / 4.6275
Yesterday’s Range 1.0639 / 1.0708
Yesterday’s Range 0.5174 / 0.5197
Oil , US Treasuries and Gold have all advanced in to the weekend close on Friday, driven by safe-haven demand as the Middle East conflict escalates. Risk assets like equities have been targeted, as investors recycle out of stocks to preferred safer haven assets. The NZDUSD and the Kiwi Bonds rallied from the open this morning, following the NZ Election over the weekend, where a Centre-Right government was elected. The AUDUSD has moved in tandem with the NZD moves at the open today, but traders last week noted that longer term investors in the AUD have started to exit as concerns mount for a riskier global growth outlook as geopolitical developments could lead to global growth declines. The key event for Australia this week will be the Aust Employment data, which could shift RBA expectations. Tuesday we get the release of the RBA Minutes from the October Meeting. Look for some support in the 0.6280/90 zone, with selling into rallies the day-trader preference, up to resistance at 0.6355.
Wall Street indices were mixed and predominantly lower as investors were eager to recycle out of risk assets in light of developments in the Middle East as Israel demands civilians leave the Gaza strip. The upbeat bank reporting season was overshadowed by the Middle East developments. The DJI managed a small gain of +0.1%, but the S&P500 was down -0.5% and the Nasdaq closed lower by -1.2% into the close. Australian shares are looking to open lower, in line with the losses on Wall Street as investors re-evaluate the direction of equities with higher oil prices threatening the inflationary outlook.
Gold prices rallied 3% as the safe haven nature of the lustre metals were firmly in the sights of investors as the Middle East conflict intensifies.
Copper prices fell for another session on Friday, as concerns for higher interest rates and mixed China data rattled the base metals markets. Iron Ore prices have been pressured by global growth concerns and China property outlook.
Brent Crude Oil prices jumped 5.7% higher as investors price in the fallout from a widening Middle East conflict and the ramification from an even tighter supply outlook.
We hope you have found our expertly curated MarketWatch analysis useful in navigating the ever-changing FX landscape. To enhance our services and make sure you receive the most relevant and timely insights we have recently made some exciting updates to our newsletter.
To continue receiving our curated MarketWatch insights, we kindly request you resubscribe to our mailing list here: https://bit.ly/46YKOdo