Open today 0.6309
Yesterday’s Range 0.6305 / 0.6399
Open today 0.5802
Yesterday’s Range 0.5801 / 0.5870
Yesterday’s Range 1.0860 / 1.0915
Yesterday’s Range 0.5967 / 0.6039
Yesterday’s Range 4.6214 / 4.6770
Yesterday’s Range 0.5205 / 0.5258
After a brief rally for the AUDUSD yesterday, following the Australian CPI release, that came in stronger than expected and prompted markets to consider the likelihood of the RBA raising interest rates next week, the AUD has succumbed to the pressure of the stronger greenback overnight and slipped back to the 0.63-cent lows. Australian CPI accelerated to 5.6% for September, well ahead of the consensus expectation of 5.4%. The AUD, as we know, is highly correlated to risk appetite, global growth and commodity prices and while commodities have been performing well, the global growth story is contending with strong inflation weighing on economies and geo-political disruptions. This scenario would suggest the AUDUSD could be in for some further downside, as has been the trend and selling into any strength has been the preferred strategy. Focus now turns to the RBA Meeting next week, Governor Michele Bullock, who will appear before the Senate Economics Legislation Committee, and a potpourri of US data. As suggested, the AUDUSD is poised to challenge recent lows behind 0.63-cents support after failing to build on the test through 0.6400 resistance.
Wall Street stocks retreated heavily, eroding previous days gains, as enthusiasm waned for corporate earnings and US Treasuries rose, with revised consideration for a ‘higher for longer’ scenario on US interest rates. The DJI fell -0.3%, the S&P500 loses -1.4% and the Nasdaq closed down -2.4%. It is hard to see Australian shares opening with anything other than a heavy bias following the stronger than expected Q3 CPI data yesterday, prompting consideration that the RBA will raise rates at their meeting next week.
Gold prices held gains for the day as the Middle East conflict continued and investors look forward to the next round of US data.
Copper prices on the LME traded softer today, struggling g against a stronger US-dollar and further signs of headwinds in the Eurozone economy. Dalian and Singapore Iron Ore prices had their third consecutive day of gains as markets were buoyed by additional measures in China set to stimulate their economy.
Brent Crude Oil prices recouped their previous day losses, as markets turned to the ongoing conflict in the Middle East and the likelihood of tighter supply.
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