29th December 2020 - US stimulus bill signed, equities run



Good Morning,


Market Headlines

Wall St remained buoyant into the close with all three benchmarks close to their record highs with the Nasdaq and S&P 1% higher whilst the Dow was also up 0.8% on the day.Despite thin trading volumes over the holiday period, equities were well bid over the offshore session as investors greeted President Trump’s signing of the coronavirus stimulus bill and the EU and UK’s agreement on a post-Brexit trade deal. Commodities, Crude -0.8%, Copper -0.7%, Iron ore -0.3% Gold $1874/oz.


Currency

AUD/USD: 0.7559 – 0.7622

EUR/USD: 1.2192 – 1.2253

GBP/USD: 1.3429 – 1.3571

USD/JPY: 103.42 – 103.86

USD/CAD: 1.2814 – 1.2876

NZD/USD: 0.7085 – 0.7139

AUD/JPY: 78.45 – 78.86

AUD/NZD: 1.0666–1.0679


AUD Thoughts

Despite suffering a very minor setback on Monday, it appears that technically speaking at least, risks remain tilted to the upside for AUD/USD; an uptrend linking the 13, 19 and 24 November and 7 and 21 December lows still looks very much relevant and would likely come into play slightly ahead of the 0.7500 level, should the pair slip that low.


In this area, bulls might be keen to buy the dip, with the lows of 15 and 22 December at 0.7507 and 0.7515 respectively adding to the support. The 21-day moving average just below 0.7500 is also worth noting. If this area of support was to go, however, a test of last Monday’s low just above 0.7460 would be likely


Event Risk Data Today

US – October Case Shiller House Prices

Recent Posts

See All

Disclaimer

This material is provided by Navigate Global Payments (Navigate) ACN 615 699 888, AFSL 502711.  The material contains general commentary only and does not constitute investment or any other advice.  Certain types of transactions, like futures, options and high yield securities can be risky, and not suitable for all investors.  This information has been prepared without considering your objectives, financial situation or needs.  Please seek your own independent legal or financial advice before proceeding with any investment decision.  The information is believed to be accurate at the time of compilation and is provided in good faith.  Navigate does not warrant the accuracy or completeness of any information contributed by a third party. The information is subject to change without notice and Navigate is under no obligation to update the information. The information contained in this material are opinions of the author at the time of writing and does not constitute an offer, recommendation to act, a solicitation of an offer, or an inducement to subscribe for, purchase or sell any financial instrument or to enter a legally binding contract.  This information, including any assumptions and conclusions is not intended to be a comprehensive statement of relevant practise or law that is often complex and can change.  Past performance is not a reliable indicator of future performance. Any forecasts given in this material are predictive in character.Navigate Global Payments Pty Ltd nor its related parties or officers accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the information contained or related to this site.