Market Watch AU – 28th November 2023
The AUDUSD has managed to clear through selling interests around 0.6590’s and pierced 0.66-cents in the off-shore session. A decline in US-dollar strength and softer Treasury yields have been the ongoing impetus for the Aussie gains. RBA Governor, Michele Bullock will be speaking on a panel with BoE Deputy Governor Dave Ramsden at the HKMA-BIS Conference in Hong Kong today and will be closely monitored for any hints to next week’s Central Bank meeting. Australian Retail Sales (Oct) are due today and are expected to show a slight increase of 0.1% for the month. The key data piece though, will be the CPI release for Australia tomorrow. Market sentiment remains mixed so further gains on the AUDUSD will be a grind into the next resistance target at 0.6650/60. Support has trailed higher to 0.6870/80 on any pull back and Consumer Price Index (CPI) for October, Retail Sales and Q3 capex are all due.
Wall Street indices were mixed for the session with investors unimpressed by Black Friday and Cyber Monday sales forecasts. This follows a subdued start to the week on European markets, with oil stocks and healthcare sector slipping lower. The DJI ended lower -0.1%, the S&P500 lost -0.06%and the Nasdaq up +0.2%. Australian shares are expected to open slightly higher today, channeling some of its northern hemisphere peers, though investors will be looking ahead to the CPI release later in the week, for a hint of direction on interest rates by the RBA, while softer commodity shares are likely to offset any benchmark gains.
Gold prices have continued to benefit from a lower US-dollar and US Treasury yields drifting, as investors continue to speculate that the US Fed may be done with its rate hiking cycle. Spot gold is up 0.5% on the day.
Copper prices dipped lower following weak China data and raised concern for demand outlook. Iron Ore prices on the Dalian exchange inched out a small gain, as Chinese authorities campaign to monitor prices, and investors await details on property-related stimulus from the government.
Brent Crude Oil prices have continued to trade soft, back under $80/bbl, but downside is limited as investors await the delayed OPEC+ meeting later this week where expectations are for further production cuts to be entertained.
Open today 0.6607
Yesterday’s Range 0.6567 / 0.6614
Open today 0.6098
Yesterday’s Range 0.6061 / 0.6107
Yesterday’s Range 1.0813 / 1.0854
Yesterday’s Range 0.6001 / 0.6038
Yesterday’s Range 4.7011 / 4.7344
Yesterday’s Range 0.5211 / 0.5235
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