Market Watch AU – 19th December 2023
The AUDUSD was in a bit of a holding pattern, though thinner market activity allowed for a modest range. The pair held on to gains made last week while chipping away at layers of supply through to 0.6725/35. Ahead today the market will look for the release of the RBA Minutes to shed some light on how the central bank is lining up the outlook for 2024. Investors will be trawling through the minutes to understand why they paused at he December meeting. The PBoC is also scheduled for its announcement on interest rates. The AUDUSD pair has been trading s trending channel, so day traders will look to continuing support at 0.6650/60 and grinding gains through to the resistance level at 0.6770.
Wall Street stocks advanced in the opening session of the week as investor look the outlook for rate cuts by the Fed into next year. The DJI was up +0.05%, the S&P500 gained +0.6% and the Nasdaq gained +0.7% by close. Australian shares are expected to open the day on the front foot with firmer energy and gold shares taking the charge, while the lead from Wall Street will also offer some additional support today.
Gold prices held up for the day as market players were seen to buy dips, however, investor focus is turning to US inflation data for further clues as to the direction for the US Fed on interest rates next year.
Copper prices softened over weak demand from China, though mine closures limited the extent of the fall amidst the prospect of tighter supply. Iron Ore futures on the Dalian exchange declined on falling hopes for further China stimulus measures forthcoming.
Crude Oil prices traded higher amid BP’s decision to suspend shipments through the Red Sea after the Houthi incident last week.
Open today 0.6706
Yesterday’s Range 0.6690 / 0.6735
Open today 0.6212
Yesterday’s Range 0.6186 / 0.6251
Yesterday’s Range 1.0759 / 1.0833
Yesterday’s Range 0.6127 / 0.6167
Yesterday’s Range 4.7741 / 4.8069
Yesterday’s Range 0.5269 / 0.5317
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