Market Watch AU – 23rd November 2023
The AUDUSD tried to rally initially yesterday, but got exhausted in the 0.6560’s and then it was the once again the US-dollar’s turn to find favour and advance against most majors after the release of the US Initial Jobless Claims came in below expectations, 209k v 225k expected. Investors continue to grapple with the central bank interest rate outlooks and as such are adding ‘noisy’ volatility to markets, particularly in risk assets. For the AUDUSD it appears to be bounded by interest in the 0.6525/0.6580’s range while markets try to analyse the current environment and what to expect next. The Thanksgiving Holiday interrupted weekend will temper volumes and activity till next week. The USDJPY rebounded on a widening of their respective Central Bank interest rate divergence and stop loss positioning around 148.50. With only the release of the Judo Bank PMI’s data on the Australian eco calendar today, look for rallies in the AUDUSD to keep finding resistance at 0.6590’s, while support at the 0.6520’s should see buying opportunities for day traders.
Wall Street indices produced some broad based gains for the day despite the attention to the US-dollar after the US weekly Jobless Claims, as investors were keen to position into the Thanksgiving Holiday weekend. The DJI was up +0.6% for the day, the S&P500 rose +0.4% and the Nasdaq advanced +0.5% for the session. Australian shares are expected to open firmer today, though a fall in Oil prices could undermine the energy sector.
Gold prices drift back below $2,000/ounce, as the US-dollar picks up and US Treasury yields pare some losses.
Base metal prices slipped lower for the day, with Copper shedding -1.1%, as the US-dollar strengthened and signs that recent sluggish demand has allowed LME stockpiles to recover. Iron Ore prices on the Dalian exchange held gains for another day.
Brent Crude Oil prices dropped 1% for the day after OPEC+ called a delay to their meeting by a week to Nov 30, with traders now questioning whether there is some disagreement between the cartel over future production cuts.
| AUDUSD
Open today 0.6543 Yesterday’s Range 0.6522 / 0.6569 |
NZDUSD
Open today 0.6022 Yesterday’s Range 0.5997 / 0.6064 |
AUDNZD
Yesterday’s Range 1.0824 / 1.0877 |
| AUDEUR
Yesterday’s Range 0.5990 / 0.6024 |
AUDCNH
Yesterday’s Range 4.6689 / 4.7018 |
AUDGBP
Yesterday’s Range 0.5215 / 0.5246 |
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