Good Morning,
Market Headlines
Wall St was mixed in early trade with the Dow around 0.4% weaker on the day while the Nasdaq was up by a similar margin while the S&P was near flat. News wires reported that the UK’s latest Brexit offer has been deemed as unacceptable. GBP/USD saw a quick dip to 1.3364 but was soon back above 1.3400 on further reports that the EU is willing to accept up to a 25% reduction in UK waters catch. Commodities, Crude -2.3%, Copper -1.7%, Iron ore -3.5% Gold $1862/oz.
Currency
AUD/USD: 0.7517 – 0.7569
EUR/USD: 1.2157 – 1.2257
GBP/USD: 1.3305 – 1.3451
USD/JPY: 103.32 – 103.73
USD/CAD: 1.2856 – 1.2933
NZD/USD: 0.7132 – 0.7077
AUD/JPY: 77.82 – 78.24
AUD/NZD: 1.0677 – 1.0702
AUD Thoughts
Risk on mode could continue with Brexit negotiations, US fiscal stimulus announcement, new virus strains and further data out this evening
US November Durable Goods Orders will provide insight into the outlook for equipment investment. Industrial production and the manufacturing PMI both suggest strength in recent months persisted in November. US initial jobless claims is likely to receive heightened attention given some evidence of a turn higher in the figures amidst the current COVID-19 case surge.
AUD/USD losing some of its topside momentum this week after failing to recover through the 0.7600 area over recent days. Liquidity expected to evaporate over coming sessions so don’t rule out some wider ranges with support initially expected in the 0.7480/0.7500 area in the sessions ahead.
Event Risk Data Today
US – Weekly Jobless Claims
US – November durable goods orders
US – November Core PCE Deflator
US – November new home sales
US – December Uni of Michigan sentiment