The US-dollar has been the key focus for markets in the final sessions of the month and with some strength has weighed on the risk currencies, taking them to the lower band of their trading ranges. During the Asia session we saw China’s PMI for Manufacturing decline signaling there are still problems amidst their economic recovery and locally, the Australian release of Private sector Credit rose by 0.2% for September and annualized at 4.9%, slightly behind the 5.1% seen in the previous month. Australian data today will include Building Approvals and Judo Bank PMI Manufacturing, but attention for traders is firmly on the results US Fed Meeting tonight where no change is expected, with the committee maintaining a tightening bias which supports the outlook for a higher-for-longer rate path. The AUDUSD continues to trade its wider range with resistance at 0.64-cent and support at the double bottom in the 0.6270/75 zone. On a tighter time frame, weakness below 0.6330 could signal deeper decline under 0.63-cents, while on the contrary strength above 0.6380 will open the opportunity to sell into the 0.64-cents resistance.
Wall Street stocks completed the month on a positive note with all indices posting gains for the session, as investors digested a mix of earnings reports and looked ahead to the US Fed meeting conclusion tonight, that is expected to see rates policy on hold. The DJI rose +0.4%, the S&P500 gains +0.7% and the Nasdaq closed up +0.5%. Australian shares are expected to follow Wall Street higher today, but a softer commodity complex could cap any enthusiasm and weigh on the mining sectors.
Gold prices slipped back on the day but held on to gains for the month, as the Middle East conflict draws safe have flows, though focus has shifted to this weeks US Fed meeting outcomes.
Copper prices on the LME were pressured lower, as the US-dollar regained some ground , along with resurfacing concerns over China demand, following a downbeat set of Manufacturing number for their economy. Singapore Iron Ore prices fell, as signs of China’s economy looks to struggle, with a miss on expectations for their Manufacturing data.
Brent Crude Oil prices slipped further, as concerns for a disruption to crude supply, due to the Middle East conflict, appeared to ease, along with reports of increased outputs from both OPEC and the US.
Open today 0.6337
Yesterday’s Range 0.6315 / 0.6374
Open today 0.5825
Yesterday’s Range 0.5804 / 0.5857
Yesterday’s Range 1.0856 / 1.0913
Yesterday’s Range 0.5966 / 0.6007
Yesterday’s Range 4.6354 / 4.6745
Yesterday’s Range 0.5209 / 0.5242
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