The AUDUSD steadied yesterday with traders digesting the rally of last week and positioning for the next few days events. The US-dollar managed to halt its slide over the session as US Treasury yields rebounded. The key for the Aussie today will be the Reserve Bank of Australia (RBA) meeting outcomes. The economist polls suggest the RBA will raise rates by 25bp to 4.35%, while the key focus will be on whether RBA Governor Michele Bullock sticks to her recent hawkish rhetoric and hints at further rate hikes to come. Recent data of CPI Q3, Retail Sales and robust consumer spending will be crucial in the board’s decision to raise today. Look for resistance at 0.6520/25 to be prominent and buying interest to support at 0.6450 ahead of 0.6400/10 to be the key levels to watch , should the RBA disappoint markets today. Either way it could be a volatile trading response to either decision following the meeting.
Wall Street indices were little changed by the end of the day but manage to print in the black, as markets await the guidance from a number of Fed officials later in the week, as to how the Bank’s policy outlook is unfolding. The DJI rose +0.1%, the S&P500 gains +0.2% and the Nasdaq closed up +0.3%. Australian shares are expecting to open softer today, as investors price in the likelihood of a rate hike from the RBA following their meeting today.
Gold prices slipped lower for the day, as Treasury yields gained and traders await Fed Chair Jerome Powell’s speech later in the week where they hope to garnish hints on the central bank’s likely trajectory on rates.
Copper prices on the LME gained 1% yesterday holding on to renewed hope of China’s commitment to boost imports and along with a softer US-dollar. Iron Ore prices ‘treaded water’ yesterday as renewed optimism for demand along with stimulus measures, was off set by some concerns as to the extent of government supervision after the recent rally and narrowing margins.
Brent Crude Oil prices gained marginally as Saudi and Russia re-iterated their commitment to tighten supply with voluntary cuts in to the year end.
Open today 0.6489
Yesterday’s Range 0.6486 / 0.6523
Open today 0.5964
Yesterday’s Range 0.5960 / 0.6002
Yesterday’s Range 1.0846 / 1.0891
Yesterday’s Range 0.6046 / 0.6077
Yesterday’s Range 4.7244 / 4.7527
Yesterday’s Range 0.5236 / 0.5270
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