Market Watch AU – 9th November 2023
The AUDUSD continued to shed ground and slipped to just under 0.64-cents as risk appetite wanes and US Fed officials maintain their hawkish stance and push back the notion of cutting rates any time soon. The key official speech will be that of Fed Chairman Powell’s presentation later tonight, our time. Though US Treasury yields retreated somewhat, the US-dollar made gains against a basket of the major global currencies, including the AUD. The AUDUSD pair retains its cautious tone today with traders looking for resistance initially at 0.6425/30 and support at 0.6400 ahead of 0.6370 behind, if trading bulls are going to rekindle any confidence for some intraday gains. Later today we look for China October CPI, expected to be -0.1% YoY and anything softer would increase the chances of an easing by the central bank and adding pressure to the Renminbi. As mentioned, it will be the speech from Fed Chairman Powell that will take centre stage for markets, due later tonight.
Wall Street indices finished the session little changed and losing steam as investors redirected their attention to Treasury yields and the latest comments from Fed officials, looking for signals for the direction of interest rates and the notion that they will be higher for longer. The DJI fell -0.2%, the S&P500 gained +0.1% and the Nasdaq closed up +0.1%. Australian shares should return a gain today, led by mining sector shares after iron ore prices got a lift with the pledge from the PBoC governor for further support to the flagging property sector.
Gold prices were on the back foot again for the day as investors awaited fresh indications for the trajectory of interest rates in the US.
Copper prices closed lower, but it was Zinc that was the base metal best performer, gaining near 2% after a fire at a large Russian mine added to supply concerns. Iron Ore prices rallied on the tail of a speech delivered by the PBoC Governor who re-affirmed support for the nation’s property sector, its largest consumer of steel.
Crude Oil prices dropped once again and to a 3-month low, shedding 2.5% on Brent, as analysts remain concerned over lower demand from US and China, the worlds largest consumers.
Open today 0.6402
Yesterday’s Range 0.6398 / 0.6449
Open today 0.5911
Yesterday’s Range 0.5907 / 0.5942
Yesterday’s Range 1.0827 / 1.0862
Yesterday’s Range 0.5977 / 0.6034
Yesterday’s Range 4.6608 / 4.6933
Yesterday’s Range 0.5209 / 0.5251
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