Market Watch AU – 5th December 2023
The AUDUSD slid back into the support at 0.66-cents overnight as US Treasury yields picked up and gave US-dollar its strength. The local markets await the result of the Reserve Bank of Australia (RBA) meeting today, where the polls suggest they will remain on hold at 4.35% after a lighter than expected CPI print for October, but the analysts will be trawling the accompanying statement that could spring a hawkish surprise. Technically the AUDUSD is still trending higher, so analysts will be hoping for some consolidation of recent moves with support at 0.6575/85 on any further pull back and traders may see this as a buying opportunity rather than a deterioration of the uptrend. A hawkish tone from the RBA will see AUDUSD resume gains to the weekly high at 0.6690’s.
Wall Street indices finished the day lower as mega cap stocks give back some gains. US Treasury bond yields lifted and also curbed recent gains. It appears that investors are going to be sensitive to market ‘bets’ on interest rates over the coming weeks. The DJI was down -0.1%, the S&P500 lost -0.5% and the Nasdaq fell -0.8%. Australian shares lost ground yesterday and will be attentive to the RBA decision on the Cash Rate following their meeting today.
Gold prices retreated after hitting a new high during the session over $2100 with profit takers taking advantage of the rally, but if the US-dollar continues its retreat into the year end, we will likely see the lustre metal resume its trend higher.
Copper prices lower on a stronger US-dollar on the day, though support is seen from supply disruptions in Panama, where operations have been suspended at the Cobre Panama mine which usually accounts for about 1% of global supply. Iron Ore futures on the Dalian exchange declined for the day, losing just over 1% on the near dated contracts.
Crude Oil prices deteriorated over the day as traders seemed unimpressed by OPEC+ promise to extend output cuts, plus the gains in US-dollar added to the downward pressure.
| AUDUSD
Open today 0.6620 Yesterday’s Range 0.6605 / 0.6691 |
NZDUSD
Open today 0.6165 Yesterday’s Range 0.6151 / 0.6223 |
AUDNZD
Yesterday’s Range 1.0714 / 1.0770 |
| AUDEUR
Yesterday’s Range 0.6106 / 0.6147 |
AUDCNH
Yesterday’s Range 4.7251 / 4.7679 |
AUDGBP
Yesterday’s Range 0.5234 / 0.5271 |
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