The AUDUSD has dragged its way to the highs of 0.67-cents across Asia and overnight trading sessions. Resistance , as expected has emerged at the 0.6800 level. Technicals favour further advance through these levels, but news today will determine immediate direction. The focus for Australia will be on the Q2 CPI report this morning, where economists expect inflation to have slowed for the June quarter, which could lean investors to consider interest rates have peaked. Also, positioning ahead of the Fed rate announcement tonight will influence the Asia session activity, in as much as where the market expects Fed Chair Powell’s comments to land in his accompanying statement. For traders today, any reversal could find first support at 0.6750’s, while resistance at 0.68-cents continues with further supply at the 0.6840/50 level behind.
Wall Street indices traded higher today, once again driven by tech sector, as investor enthusiasm for AI and earnings reports expectations fuel the run, all the while traders position for the outcome of the Fed latest meeting tonight. The DJI was up 0.1%, the S&P500 closed higher 0.3% and the Nasdaq also closed higher 0.6% for the session. Australian shares look to open higher once again today, with commodity shares in the limelight on the tail of China’s pledge for stimulus, while traders remain cautious over local inflation data releases and Fed interest rate announcements later tonight.
Gold prices inched higher, as investors look through the likelihood that they raise rates once more tonight and expect the FOMC to indicate an end to its tightening policy going forward.
Copper prices added 1.8% today, spurred on by Beijing’s suggestions for support to bolster their economy. Iron Ore prices traded higher for the day, as traders welcomed China’s pledge for more stimulus to support their struggling economy and particularly the property sector .
Brent Crude Oil prices posted further gains today, driven by optimism of China stimulus measures, along with tighter supply conditions in the marketplace.