Good Morning,
Market Headlines
A slow session overnight with U.S equity and bond markets closed with the US out observing the Thanksgiving Day holiday. Commodities, Brent crude oil futures fell 1.7% to $47.80, copper rose 1.5%, iron ore rose 1.7% to $129.90, and gold rose 0.2%.
Currency
AUD/USD: 0.7354 – 0.7374
EUR/USD: 1.1885 – 1.1941
GBP/USD: 1.3322 – 1.3395
USD/JPY: 104.22 – 104.35
USD/CAD: 1.2999 – 1.3023
NZD/USD: 0.6994 – 0.7011
AUD/JPY: 76.62 – 76.89
AUD/NZD: 1.0511 – 1.0523
AUD Thoughts
The Australian dollar has been practically flat at 0.7365 area on a quiet session with the US celebrating Thanksgiving day. The pair consolidates gains near three-month highs with upside attempts capped below 0.7375. US dollar weakened after the release of the FOMC minutes. Greenback demand was hurt on Wednesday following the release of the Federal Reserve last meeting’s minutes, with the bank hinting at further monetary stimulus actions on December’s meeting to support recovery from the economic impact of the COVID-19 pandemic. The US dollar dropped to a fresh 12-week low against a basket of the most traded currencies shortly after the release, before picking up over Thursday’s European and US trading sessions.
Commodities continue to lend support, with the daily measure of Australia’s commodity export prices edging up to 7-year highs, with iron ore above $125/tonne, a somewhat fragile USD in the week ahead could see the AUD/USD take out 0.7414 resistance, with dips perhaps limited to the mid-0.72 area
Event Risk Data Today
Australia: Black Friday sales.
New Zealand: Although ANZ Consumer Confidence is still at a low level, it has been steadily rising ahead of the November update.
China: October industrial profits should be supported by robust consumption and external demand.
Euro Area: November Economic Confidence (market f/c: 86.0) and Consumer Confidence will be pressured by the renewed lockdowns.
US: Black Friday sales.