Market Watch AU – 14th November 2023
The AUDUSD edged lower during trading for Asia yesterday with trade flow noted lighter than usual due to the Singapore holiday. Overnight the AUDUSD gathered some momentum and pushed to 0.6390’s as the US-dollar eased, though the ‘big dollar’ seems to be consolidating ahead of this weeks data events. Data releases today for Australia include Westpac Consumer and NAB Business Confidence surveys to be published, though not expected to be a market mover on their own, as we await Wage Price index and Jobs report later in the week to shape the expectations for the RBA at the December meeting. On the technical side, the AUDUSD looks to find initial support at 0.6350, while any advance will find supply at 0.6400/10, the old pivot level offering some resistance. Markets will also be attentive to the JPY and speculation as to whether BoJ will intervene to limit the depreciation of their currency as it approaches a 33yr low against the USD.
Wall Street equities ended the day mixed and making no real ground in either direction as investor await the release of the next CPI read on Wednesday that will provide some insight on how the US Fed may respond to consumer conditions and applying their interest rate policy. The DJI rose +0.2%, the S&P500 fell -0.1% and the Nasdaq slipped lower by -0.2%. Following the offshore activities and the moves on global bourses, Australian shares are expected to open higher today, spurred on by positive moves on commodities , though some caution remains ahead of US CPI release tomorrow night AEST.
Gold prices pinched a small amount of ground yesterday as the US-dollar eased a tad, though investors remain observant to the release of the US inflation data tomorrow, that is expected to offer some insight to the Fed’s rate stance.
Copper prices rebounded higher in the opening session of the week, however gains were limited by investor indecision over the outlook for interest rates ahead. Dalian Iron Ore prices finished higher for another straight session as traders look to improved demand from China’s property sector following the Minister of Housing and Rural development’s comments to state media, that the authorities have pledged the promotion of high quality development of the sector and to meet the housing demands of the people.
Brent Crude Oil prices maintained their positive theme after OPEC’s monthly market report eased concerns over softer demand and surfacing reports of Russian oil sanction violations that may impact potential supply disruptions.
Open today 0.6377
Yesterday’s Range 0.6350 / 0.6391
Open today 0.5877
Yesterday’s Range 0.5870 / 0.5899
Yesterday’s Range 1.0782 / 1.0851
Yesterday’s Range 0.5943 / 0.5975
Yesterday’s Range 4.6392 / 4.6591
Yesterday’s Range 0.5193 / 0.5211
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