Market Watch AU – 21st November 2023
The US-dollar continues its decline against all but one of the G10 majors as the consensus view from analysts emerges for the end of rate hikes from the US Fed. With that the AUD has again posted gains for its opening sessions of the week, AUDUSD grinding through the resistance around 0.6550’s and eyes now on the 0.6580/90 , as the bias for the AUD is shifting to a slightly bullish tone, though further supply into the resistance will agitate for slow going. Positive moves on European and Wall Street equity bourses has sparked attention to risk assets, though a successful US 20y Treasury auction did cool the sentiment and momentarily favour the US-dollar. RBA Gov Michele Bullock is due to deliver a speech first up for the day, at the ASIC Annual Forum, followed by the release of the latest RBA Meeting minutes later in the morning.
Wall Street indices saw the Nasdaq lead gains as tech stocks found initial favour, while consumer stocks remained tepid after Walmart expressed a cautionary outlook. The DJI rose +0.6% for the day, the S&P500 gained +0.7% and the Nasdaq rallied to a +1.1% gain for the session. Following the continued favour for commodity prices, especially oil, Australian shares are expected to open higher today, albeit holding out ahead of the release of the RBA Meeting minutes for November.
Gold prices pulled back after the success of the Treasury auction and uptick in yields, while investors await the release of the US Fed minutes later in the week.
Copper prices rallied for the day , spurred on by mine disruptions with a strike at a major mine in Peru and protests arising at a mine in Panama. LME Copper prices added 2% for the day. Dalian Iron Ore prices found favour to start the week, as sentiment cooled around Chinese authority intervention, noted lower inventories and concerns over supply disruptions.
Brent Crude Oil and WTI prices both extended gains for the day, as traders look to further supply cut expectations from OPEC in coming weeks.
Open today 0.6557
Yesterday’s Range 0.6494 / 0.6565
Open today 0.6037
Yesterday’s Range 0.5977 / 0.6043
Yesterday’s Range 1.0845 / 1.0896
Yesterday’s Range 0.5954 / 0.6007
Yesterday’s Range 4.6887 / 4.7099
Yesterday’s Range 0.5215 / 0.5258
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