Market Watch – 17th October 2023
Open today 0.6342
Yesterday’s Range 0.6294 / 0.6345
Open today 0.5928
Yesterday’s Range 0.5899 / 0.5929
Yesterday’s Range 1.0634 / 1.0707
Yesterday’s Range 0.5983 / 0.6013
Yesterday’s Range 4.6078 / 4.6374
Yesterday’s Range 0.5183 / 0.5208
The AUDUSD has opened higher into Asia after the US-dollar has broadly eased, with market participants reversing some of their safe-haven positions that were placed ahead of the weekend in response to the escalating crisis that was emerging in the Middle East. Whilst the situation remains tense, investors have returned their focus to broader global conditions and moved back to the equity commodity markets. The key event for Australia today will be the release of the RBA Minutes from the October Meeting, but are unlikely to shift the dial local markets. Look for some support in the 0.6280/90 zone, with selling into rallies for the day-trader preference, up to resistance at 0.6355/65.
Wall Street indices all ended in the black as investors choose to look through the Middle East problems and ponder a more benign US economic outlook and upbeat corporate earnings back drop as they look in to next year. Upbeat bank reports are helping to shape this opinion, but questions remain as to if it can be sustained. The DJI managed to gain +0.9%, but the S&P500 was up +1% and the Nasdaq closed higher by +1.2% into the close. Australian shares are looking to track Wall Street higher, as investors re-evaluate the direction of equities and await the latest RBA Minutes to gauge any hint for local interest rate outlook.
Gold prices returned some of their weekend gains but the investors in lustre metals markets remain on edge with their sights on developments in the Middle East conflict.
Copper prices squeezed higher as the US-dollar eased and the PBoC injected liquidity, though Middle East developments weigh on the market. Iron Ore prices have returned to favour, after investor sentiment was lifted by the latest Chinese stimulus.
Brent Crude Oil prices eased as traders note that there has been little disruption to oil supplies as a result of the Israel-Hamas conflict and chatter that US and Venezuela could reach a deal soon over sanctions on Venezuelan crude exports.
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