24th November 2020 - AUD/USD hesitates around 0.7300with the USD on recovery


Good Morning,

Market Headlines

Positive COVID-19 vaccine developments continued to underpin US equities overnight with the S&P 500 gaining 0.4% while the Dow Jones was 0.9% higher, these positive moves occurred despite the simmering tensions between China and the Trump administration. Commodities, Brent crude oil futures rose 2.2% to $45.95, copper fell 1.3%, iron ore fell 2.1% to $126.10, and gold fell 1.7%.

Currency

AUD/USD: 0.7266 – 0.7337

EUR/USD: 1.1850 – 1.1906

GBP/USD: 1.3265 – 1.3396

USD/JPY: 103.69 – 104.63

USD/CAD: 1.3046 – 1.3113

NZD/USD: 0.6898 – 0.6967

AUD/JPY: 75.78 – 76.13

AUD/NZD: 1.0517 – 1.0541

AUD Thoughts

RBA Deputy Governor Debelle will speak today “Monetary Policy in 2020” although no market implications are expected – and Victoria’s state government Budget is due later this evening.

Topside resistance in the AUD/USD remains at 0.7340 with a break of this level opening up a move back to 0.74c while Downside support now rests at 0.7255 and again at 0.7220.

Event Risk Data Today

Australia: RBA Deputy Governor Debelle will speak on “Monetary Policy in 2020” at the Australian Business Economists webinar (1:30pm).

US: September data for the FHFA house price index (market f/c: 0.5%) and the S&P/Case-Shiller home price index (market f/c: 0.60%) should reveal ongoing strength in the housing market. Meanwhile, November consumer confidence is expected to decline in the face of rising case counts and waning stimulus (market f/c: 97.9). The Richmond Fed index, which has surpassed pre-COVID highs, is set to moderate (market f/c: 21). Finally, the FOMC’s Bullard (03:00 AEDT) and Williams (04:00 AEDT) will speak.

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