Market Watch AU – 12th December 2023
The AUDUSD traded lower yesterday, led by the Chinese Renminbi weakness amid increasing deflationary pressure, as traders await further data releases and results from the US Fed meeting this week. For today we look to a speech from RBA Gov Michele Bullock at the Australian Payment Network Summit in Sydney, along with Westpac Consumer Confidence and NAB Business Confidence surveys, to entertain the day. The pair looks to hold its consolidation pattern ahead of these major data pieces and events, looking to support at 0.6530’s and rallies exhausting at 0.6630’s.
Wall Street indices posted session gains for the as investors turned their attention to the CPI data and the US Fed meeting that will be held over the next two days, that will shape expectations for interest rates over the coming months. The DJI was up +0.3%, the S&P500 gained +0.3% and the Nasdaq climbed just +0.1% by close. Australian shares are expected to remain steady as investors await fresh news from a number of economic releases and central bank meetings this week, including Australian employment data for November, due on Thursday.
Gold prices slipped further lower yesterday as US Treasury yields rallied and US-dollar firmed ahead of key events and data this week that could influence the US Fed’s decision for its policy path.
Copper prices slipped lower under the weight of an advancing US-dollar. Iron Ore futures on the Dalian exchange declined after disappointing data from China underscored how its economic recovery has stalled, despite the recent stream of pledges made by Beijing to bolster stimulus. Economic targets for 2024 will be set at the Communist Party’s annual conference, slated to be held later this month.
Brent Crude Oil prices dipped just 5cents as trading held steady as concerns remain over oversupply, despite OPEC+ cuts and softer demand due next year.
Open today 0.6568
Yesterday’s Range 0.6550 / 0.6585
Open today 0.6124
Yesterday’s Range 0.6106 / 0.6146
Yesterday’s Range 1.0688 / 1.0763
Yesterday’s Range 0.6087 / 0.6118
Yesterday’s Range 4.7119 / 4.7288
Yesterday’s Range 0.5212 / 0.5248
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