Market Watch AU – 22nd November 2023
The Aussie got another day on the front foot, seeing 0.6590 the high, after RBA Gov Bullock comments earlier in the day to the effect that underlying demand is contributing to the inflation challenge, making it a longer term concern over the next one to two years. She also believes that progress in employment can be sustained. The implication here though, is there could be more hikes to come. November RBA Meeting minutes were also met with a hawkish tone and investor mood in the Asia session were optimistic with firm commodity prices and the potential of stimulus measures for China. Overnight the release of the Fed Meeting minutes gave the US-dollar some attention as FOMC members noted that inflation remained well above their target but noted that rates would only need to be raised if subsequent data does not indicate a sufficient response to a longer term restrictive stance to policy. Nothing of note on the Australian eco calendar today so look for rallies in the AUDUSD to keep finding resistance at 0.6590’s while support at the 0.65-cent levels will be required if the pair is to regain momentum for a top side advance. Traders will watch the AUDJPY and USDCNH flows for hints to AUD sentiment and directional flows across the day.
Wall Street indices finished lower after the minutes from the latest Fed Meeting showed officials agreed to proceed with a cautious approach to raising rates further, but intimated that policy will remain restrictive for much longer. The DJI was down -0.2% for the day, the S&P500 fell -0.2% and the Nasdaq lost -0.6% for the session. Australian shares are expected to open lower today, taking its cue from Wall Street moves overnight.
Gold prices advanced back over $2,000/ounce, lifted by the expectation from investors that the US Fed has finished raising interest rates.
Copper prices rallied again for another day , lifted by hopes for more support to the China property sector, being one of the worlds largest consumers for the base metal. Dalian Iron Ore prices edged higher again as sentiment got a boost from Chinese authorities latest support to their property sector, along with noted lower inventories and concerns over supply disruptions.
Brent Crude Oil prices cooled after a couple of days of strong gains, as traders begin to position ahead of this weekends OPEC+ meeting and the expectation that they may introduce further production cuts.
| AUDUSD
Open today 0.6556 Yesterday’s Range 0.6545 / 0.6590 |
NZDUSD
Open today 0.6049 Yesterday’s Range 0.6029 / 0.6086 |
AUDNZD
Yesterday’s Range 1.0814 / 1.0875 |
| AUDEUR
Yesterday’s Range 0.5990 / 0.6015 |
AUDCNH
Yesterday’s Range 4.6766 / 4.7037 |
AUDGBP
Yesterday’s Range 0.5225 / 0.5253 |
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