Market Watch AU – 16th November 2023
The US-dollar managed a bounce off its biggest fall in a year, but the AUUSD has remained resilient and opens Asia back above 0.65-cents today after touching 6540’s overnight. US Retail Sales were the instigator of the move, reporting a decline for October, but by not as much as much as the market analysts had expected. Traders today will be waiting for the release of the Australian Labour data for October which is likely to be a contributing factor for the RBA policy meeting next month. Analysts are expecting a rise in jobs numbers by 20k, with a marginal uptick in unemployment from 3.6% last, to 3.7% for October. As mentioned, the AUDUSD opens our day around the 0.65-cent level with a neutral to slightly positive bias and will be looking for a broader range to hold between 0.6400/0.6600. Also in the Asia session will be the release of Japanese Trade data and China House Prices report with the latter garnishing attention for any signs that their property sector may be stabalising.
Wall Street equities edged higher, as investors contemplate the Fed is now done with rate rises after the latest round of economic data. The DJI rose +0.5%, the S&P500 rallied +0.3% and the Nasdaq gained +0.2%. Following the offshore activities and the moves on global bourses, Australian shares are expected to open a little lower today, after yesterdays Q3 Wage report showed a rise and dampened local risk appetite.
Gold prices eased slightly against a rebounding US-dollar but the case for the Fed to be thought to be done with rate increases for now, is providing a floor for prices.
Copper prices trade higher in response to stronger industrial production data for China, though the firmer US-dollar tempered some of the gains. LME Copper gained just +0.5% at close. Dalian Iron Ore prices closed higher +1%, as traders received the latest Industrial output data for China well and hoped for ongoing support to their ailing property sector.
Brent Crude Oil prices turned south for the day, following a bigger than expected rise in US inventories report along with heightened concerns for demand out of Asia.
Open today 0.65
Yesterday’s Range 0.6483 / 0.6542
Open today 0.60
Yesterday’s Range 0.5998 / 0.6054
Yesterday’s Range 1.0774 / 1.0837
Yesterday’s Range 0.5966 / 0.6011
Yesterday’s Range 4.7054 / 4.7378
Yesterday’s Range 0.5195 / 0.5250
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