Open today 0.6323
Yesterday’s Range 0.6298 / 0.6330
Open today 0.5835
Yesterday’s Range 0.5817 / 0.5854
Yesterday’s Range 1.0809 / 1.0846
Yesterday’s Range 0.5955 / 0.5983
Yesterday’s Range 4.6206 / 4.6405
Yesterday’s Range 0.5187 / 0.5215
Risk aversion has been the predominant theme for the antipodeans, of AUD and NZD against the USD, due to the uncertainty of developments in the conflict between Israel and the Hamas in Gaza and the fears that tensions could easily escalate into the broader Middle Eastern nations. The Reserve Bank of Australia may be erring towards a more hawkish stance, particularly if CPI remains stubbornly robust with higher oil prices from the OPEC production cuts, Middle East tensions escalating and the lower AUD fanning the inflationary measure. The AUDUSD slipped below 0.63-cents once again in offshore trading on Friday, but escaped further weakness as buyers emerged well ahead of the yearly lows. Looking ahead this week, we get the ECB rate decision, expected to be a ‘hold’, and global flash PMI’s plus a key inflation read for the US. Australia looks forward to Q3 CPI on Wednesday, which could add further to the 30% expectation for a RBA rate hike at the November meeting. While there isn’t any local data due today downunder, direction will likely be influenced by the performance of Asia equity bourses. Day traders will continue to play the range on any intra-day moves. Look for support continuing at 0.6290/00 zone on any weakness, with resistance persisting at the old pivot point of 0.64-cents.
Wall Street stocks slid lower into the weekend as investors remained concerned over the possibility of more rate hikes to come and the uncertainty of the Israel-Hamas conflict spreading in the Middle East. The DJI dropped -0.9%, the S&P500 ended the session lower by -1.3% and the Nasdaq closed lower by -1.5% at the close. Australian shares are likely to open lower today, tracking Wall Street moves and commodity prices, while also monitoring rising tensions in the Middle East conflict.
Gold prices pushed higher for the day and the week, as the threat of escalation in the Middle East conflict draws investor to safer have assets.
Copper prices gave back their previous session gains, due to sluggish global growth and the lack of forthcoming stimulus from leading consumer China. Iron Ore prices on the Dalian closed down on Friday as traders re-ignite concerns over the ailing Chinese property sector and the weaker than expected steel production.
Brent Crude Oil prices receded, as the Israel-Hamas conflict appeared to be proceeding without any immediate inclusion of the broader Middle East, that could disrupt crude supply.
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