Risk sentiment was affected by conflict between the Federal Reserve and Treasury regarding additional stimulus. The S&P500 fell 0.7%, and bond yields are slightly lower, while currencies were mixed. Commodities, Brent crude oil futures rose 1.7% to $45.85, copper rose 2.8%, iron ore rose 1.1% to $122.80, and gold rose 0.2%.
AUD/USD: 0.7282 – 0.7324
EUR/USD: 1.1850 – 1.1889
GBP/USD: 1.3251 – 1.3300
USD/JPY: 103.71 – 103.88
USD/CAD: 1.3039 – 1.3097
NZD/USD: 0.6920 – 0.6951
AUD/JPY: 75.58 – 75.97
AUD/NZD: 1.0511 – 1.0537
AUD/USD bounced to a high of 0.7324 on Friday before closing the week at 0.7302. Offering interest has likely grown around the recent highs of 0.7340 although a break of this level could trigger significant technical demand. Bids are expected to rest ahead of 0.7240 and again at 0.7200.
Event Risk Data Today
New Zealand: The market expects that Q3 real Retail Sales will rebound 17% and retrace most of the ground lost in the June quarter.
Europe: November Markit PMIs for the Euro Area and UK are set to reveal the immediate impacts of the renewed lockdowns.
US: After rebounding in Q2, The Chicago Fed activity index has steadily declined. If the index remains positive in October, this will imply that growth is above trend. With business activity growing at its strongest pace since Feb 2019, the November Markit manufacturing PMI is expected to print at 53.0. Meanwhile, the November services PMI should signal expansionary conditions for the fifth straight month (market f/c: 55.0). The FOMC’s Barkin (04:30 AEDT), Daly (05:00 AEDT) and Evans (07:00 AEDT) will speak.