Market Watch AU – 24th October 2023
Open today 0.6336
Yesterday’s Range 0.6290 / 0.6349
Open today 0.5845
Yesterday’s Range 0.5808 / 0.5857
Yesterday’s Range 1.0812 / 1.0864
Yesterday’s Range 0.5937 / 0.5973
Yesterday’s Range 4.6078 / 4.6424
Yesterday’s Range 0.5171 / 0.5203
The AUDUSD managed a modest bounce, aided by a softer US-dollar across the US session, but still remains bearish for the time being. Aid convoys into Gaza and the release of two Israeli prisoners have encouraged an uptick in sentiment towards the immediate risks that have been circulating markets and prompted a retreat for Gold and Oil prices. US Treasury yields have declined and the root reason for the weaker dollar over the session. RBA Chair Michele Bullock is to deliver her first prepared speech today at the CBA Global Markets Conference in Sydney today and will be closely watched by traders. Australian analysts, however, have the Q3 CPI on Wednesday to look forward to, which could add further to the 30% expectation for a RBA rate hike at the November meeting. Day traders will continue to play the range on any intra-day moves. Look for support continuing at 0.6290/00 zone on any weakness, with resistance persisting at the old pivot point of 0.64-cents. Gains above 0.6355 will be encouraging for a shorter term view of further strength, but the AUDUSD pair is still considered to be in a downtrend.
Wall Street indices were mixed and stocks erred lower into the close, as the Gaza conflict continues and Oil and gold slides. The DJI dropped -0.6%, the S&P500 ended the session lower by -0.2% and the Nasdaq closed higher by +0.3% by the close. Australian shares are likely to open lower again today, weighed down by resource shares that are responding to underlying commodity prices, while investors look forward to tomorrows inflation data release.
Gold prices eased for the day, after hovering close to the $2000 level that arose from the latest round of safer haven flows. Investors are now awaiting further US data releases and the developments in the Gaza conflict for further impetus.
Copper prices slid lower, due to the lack of forthcoming stimulus from leading consumer China and its property sector, plus the ongoing geo-political disruption in the Middle East. Iron Ore prices on the Dalian closed lower again as traders continue to focus on the Chinese property sector and the hint of weaker demand from local steel mills.
Brent Crude Oil prices dropped 2%, as traders responded to considerations for a lesser disruption to supply, as diplomatic efforts to contain the conflict between Israel and Hamas intensified.
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