Open today 0.6414
Yesterday’s Range 0.6389 / 0.6445
Open today 0.6020
Yesterday’s Range 0.6007 / 0.6055
Yesterday’s Range 0.6034 / 0.6072
Yesterday’s Range 4.6654 / 4.6942
Yesterday’s Range 1.0619 / 1.0667
Yesterday’s Range 0.5203 / 0.5240
The markets traded cautiously yesterday, ahead of the US release for PPI, September. The US-dollar reaction was somewhat muted on the release, with more activity in response to the Fed Minutes to the September meeting, where it showed members agreed that they should “proceed carefully”, but also leaving the door open for a further hike, while some members are adamant no more hikes are needed. Overall risks currencies have retreated from daily highs and the US-dollar has stabilized after several sessions of decline. Ahead today attention will be on the US CPI release tonight, while locally the AUDUSD will follow the performance across Asia equity markets and AUDJPY moves to provide direction in our session today. The Middle East conflict will also demand attention for traders as we watch closely for any developments there. Continued resistance seen in the 0.6435/65 zone and support at 0.6390 with further interest back to 0.6370’s.
Wall Street struggled for direction and remains cautious ahead of the US CPI release tonight. Minutes of the Fed September meeting provided afternoon support to the asset class. In afternoon trading, the DJI was up +0.2%, the S&P500 was up +0.4% and the Nasdaq was up +0.7% for the session. Australian shares are looking to open lower, reflecting the stagnation on Wall Street and Oil futures denting the energy sectors.
Gold prices held firm for the day, advancing modestly as investors digested the US PPI, which rose by more than forecast, suggesting the inflationary hedge of the lustre metals remains relevant.
Copper prices were little changed though interest remained positive with the announcement that China will close some of their coking ovens by the end of the year, and require supplies from alternative sources such as Australia. Iron Ore futures gain as traders respond to the suggestions that Beijing will opt for more targeted measures to soften the blow for China’s property sector .
Brent Crude Oil prices closed lower for the session, as traders remain attentive to any supply disruptions as a result of the conflict in the Middle east.
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