Market Watch AU – 20th November 2023
A softer US-dollar against the majors in to the weekend, has provided a lift for the AUDUSD as well, back over 0.65-cents in early Aisa trading. The consensus view that the Fed has finished hiking rates is providing the catalyst for a retreat in US Treasury yields and a move away from US-dollars. A rise in commodity prices to close the week, especially that of oil, has underpinned the rise of the antipodeans. The bias for the AUD is shifting to a slightly bullish tone and traders aim to the next resistance at 0.6550’s, ahead of 0.6580/90 , where latent supply is positioned to stall the advance on initial attempts. This shift in sentiment will require the downside to be supported at 0.6445/50 for bulls to remain in play. Economic events for Australia include a speech from RBA Governor Michele Bullock on Tuesday and the release of the latest RBA Meeting minutes on Wednesday. On the US calendar will be Existing Home Sales FOMC Minutes of the latest meeting, Durable Goods orders, Jobless Claims and PM’s.
Wall Street indices finished the day just in the black as investors re-assess the view that US Fed may be done with hiking rates as data points to a softer landing in their economy, though Fed officials were seen to push back on the outlook that the central bank is in a position to be contemplating to cut rates any time soon. The DJI managed to end just ahead at +0.01% for the day, the S&P500 gained +0.1% and the Nasdaq edged up just +0.1% for the session. Following the lift in commodity prices, especially oil, Australian shares are expected to open higher today, garnishing support to the energy sector.
Gold prices traded steadily on Friday and holding on to weekly gains, as building expectations for the Fed to have finished with their rate tightening policy kept US Treasuries restrained and the US-dollar under pressure.
Copper prices picked up on Friday with the help of easing US-dollar and concerns of tightening supply emerging from some mines. LME Copper recovered its previous session losses, gaining +0.7% for the day. Dalian Iron Ore prices eased lower as Chinese authorities monitor prices and the property sector continues to languish.
Brent Crude Oil prices rebounded 4% for the day as traders took some profits, US-dollar weakness and US sanctions on selected Russian oil shippers adding to the support.
| AUDUSD
Open today 0.6494 Yesterday’s Range 0.6453 / 0.6517 |
NZDUSD
Open today 0.5990 Yesterday’s Range 0.5941 / 0.5997 |
AUDNZD
Yesterday’s Range 1.0818 / 1.0885 |
| AUDEUR
Yesterday’s Range 0.5952 / 0.5992 |
AUDCNH
Yesterday’s Range 4.6805 / 4.7043 |
AUDGBP
Yesterday’s Range 0.5203 / 0.5239 |
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