Market Watch AU – 7th December 2023
The AUDUSD rose modestly on intraday trading in Asia yesterday, garnishing direction from equity bourses in the region which were all trading positive for the session. The Australian Q3 GDP report was also released and showed the economy expanded by a less-than-expected 0.2% while the annualized came in a 2.1%yoy, which added to the evidence that the economy is slowing and find markets revising price expectations that reflect potential rate cuts by the middle of next year. Going in to the northern hemisphere session the AUDUSD had retreated from intraday gains, as the US-dollar once again picked up momentum and sees the ‘risk’ pair trading on support at its short term moving averages around 0.6540’s. Day traders will be looking to fade the rallies in to the 0.66-cent level for today, as we await the next important data release of US Non-farm Payrolls due out tomorrow night. For Australia today we look for the latest Trade figures , which is expected to be a favourable $7500mln for October and above last of $6786m. Further advance for the Aussie above 0.66-cents could negate the downside pressure, but bias from the open remains to the downside looking at support initially in the 0.6540’s with deeper interest at 0.6500/10.
Wall Street stocks closed lower for the day going against the flavour of other global equity bourses for the day, that were positive. The US bourse had started the day positive following the European tone, but was dashed by November ADP jobs report that showed the economy added less jobs than had been expected in a further sign the economy is responding to the Fed rates policy. The DJI was down -0.2%, the S&P500 lost -0.4% and the Nasdaq dropped -0.6%. Australian shares look to open lower today following the close of Wall Street and tracking the mixed performances of commodity prices.
Gold prices have rebounded after hitting a one-week low of $2009, in response to retracting US bond yields over the day.
Copper prices declined, after giving up earlier gains, as traders contemplate the Fed’s next move following the US ADP report that showed declining private payrolls are adding to evidence of a cooling labour market. Iron Ore futures on the Dalian exchange rebounded for the day, as key steel mills increase production amidst a decline in inventories at the end of November.
Brent Crude Oil prices fell to a five month low as US producers flood the market with supply. US inventory data released overnight shows a draw of 4.6mln bbl versus an expected 1mln bbls this week.
Open today 0.6549
Yesterday’s Range 0.6548 / 0.6597
Open today 0.6138
Yesterday’s Range 0.6128 / 0.6277
Yesterday’s Range 1.0660 / 1.0697
Yesterday’s Range 0.6064 / 0.6113
Yesterday’s Range 4.6951 / 4.7225
Yesterday’s Range 0.5199 / 0.5231
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