The AUDUSD catches a bid after Q3 Retail Sales came in stronger than expected yesterday and put the next RBA meeting firmly in the frame for a chance of a rate hike to come. Australian Retail Sales for September rose by +0.9% versus a 0.3% lift expectation. Whilst the data bureau points out that there are a number of ‘one-off’s’ in the release, the market mood has swung to a heightened expectation that the RBA will have room to raise rates next week. The Aussie also got a boost as US-dollar eased in overnight trading and with the China Caixin report, which showed an expansion in manufacturing for October. The BoJ meet today and are expected to tweak their policy, with consideration to raising the cap on their 10y government bond to accommodate rising yields. Australian data will include Private Sector Credit for September, but attention for traders now sways to the US Fed Meeting tomorrow. The AUDUSD is once again looking to challenge the 0.64-cent resistance with hopes that the risk momentum continues. A double bottom at the 0.6270/75 offers support and resistance around the 0.6400/10 remains, with bulls hoping for a run to 0.6450’s.
Wall Street stocks finished with a rally, as the US-dollar eased and investors looked forward to a busy week of earnings reports, data releases and the US Fed meeting, that is expected to see rates policy on hold. The DJI rose +1.6%, the S&P500 gains +1.2% and the Nasdaq closed up +1.1%. Australian shares are expected to open higher today, following Wall Street and as investors favour the mining and energy sectors on a strong prices.
Gold prices gyrate around the US$2000 mark, as the Middle East conflict draws safe have flows, all the while looking ahead to this weeks US Fed meeting outcomes.
Copper prices on the LME rose marginally, as the US-dollar eased , along with upbeat signs of a recovering economy in China and declining inventories. Dalian Iron Ore prices rallied 2.5% higher again, as signs of China’s economy looks to stabalise and expectations of additional fiscal stimulus from Beijing has been encouraging.
Brent Crude Oil prices gave back the gains from its previous session, as concerns for a disruption to crude supply due to the Middle East conflict, appeared to ease.
Open today 0.6374
Yesterday’s Range 0.6333 / 0.6384
Open today 0.5844
Yesterday’s Range 0.5805 / 0.5846
Yesterday’s Range 1.0895 / 1.0930
Yesterday’s Range 0.5992 / 0.6027
Yesterday’s Range 4.6470 / 4.6764
Yesterday’s Range 0.5223 / 0.5257
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