Market Watch AU – 19th October 2023
Open today 0.6336
Yesterday’s Range 0.6328 / 0.6393
Open today 0.5855
Yesterday’s Range 0.5852 / 0.5920
Yesterday’s Range 1.0681 / 1.0826
Yesterday’s Range 0.6009 / 0.6040
Yesterday’s Range 4.6382 / 4.6756
Yesterday’s Range 0.5212 / 0.5242
During the Asia session the AUD and the NZD managed to edge higher after China’s Q3 GDP release surprised the markets to the upside, seeing growth of 1.3% for the quarter, and yoy print of 4.9% beating expectations of 4.4%. RBA Governor Michele Bullock also offered comment to Australia’s inflation and suggested that policymakers will have to raise rates again if inflation remains higher than expectations. Once the northern hemisphere took over the trading books, their attention swung back to the Middle East conflict, a desire for US-dollars and a swing back out of risk assets, that drove the antipodeans back to overnight session lows. In Australia today we await the release of the Employment numbers for September, which is expected to show no change to the Unemployment rate of 3.7% with an uplift of 20k new jobs added. Any divergent weakness to the release would see support for the RBA to remain on hold at the next meeting, and tip over the AUDUSD and possibly, to test back at the yearly lows. Look for some support at 0.63-cents on any weakness, with resistance persisting at the old pivot point of 0.64-cents. Day traders will continue to sell strength on any intra-day moves.
Wall Street stocks were dumped dragging the major indices lower as rising conflict in the Middle East dominates risk appetite and increases oil supply concerns. The DJI dropped -1%, the S&P500 ended the session lower by -1.4% and the Nasdaq closed lower by -1.6% at the close. Australian shares are looking to lower today dampened by Wall Street moves and rising tensions amidst the Middle East conflict.
Gold prices have rallied 1% higher as investors run for the safer haven lustre metals, with their sights on escalations in the Middle East conflict and higher oil prices.
Copper prices were marginally higher, though better than expected China data was not enough to offset US-dollar gains. Iron Ore prices have flipped back, as lower than expected steel output and damaged property sector, raise concerns for demand outlook.
Brent Crude Oil prices returned significant gains again, as Iran weighs in with a call for an oil embargo on Israel over the Gaza conflict and laying concerns over global supplies. Brent futures were up 1.8% at close.