Good Morning,
Market Headlines
In Wall Street, the Dow Jones is up by 0.42%, and the Nasdaq gains 0.49%. Gold is rising 1.35% and crude oil up 1.80%; the WTI barrel that trades at the highest level in a year at $57.90. The US dollar failed to hold to gains. The DXY peaked during the American session at 91.23 and then turned to the downside, bottoming at 90.89, a six-day low. The reversal in US bond yields contributed to the bounce in the USD. The 10-year yield is at 1.15% after hitting earlier at 1.20%, the highest since March.
Overnight Currency Ranges
AUD/USD: 0.7652 – 0.7715
EUR/USD: 1.2020 – 1.2066
GBP/USD: 1.3680 – 1.3749
USD/JPY: 105.15 – 105.67
USD/CAD: 1.2742 – 1.2782
NZD/USD: 0.7179 – 0.7232
AUD/JPY: 80.79 – 81.19
AUD/NZD: 1.0653 – 1.0670
AUD Thoughts
The AUD/USD broke above 0.7680/85 and jumped to 0.7714, reaching the highest level since February 27. As of writing, it is hovering around 0.7700, holding onto daily gains and above the 20-day moving average. Demand is expected back toward 0.7580 while offering interest likely begins ahead of 0.7700 with the bigger technical resistance still sitting at the recent highs of 0.7820.
Event Risk Data Today
Australia: The January NAB business survey will be released. Conditions rose 7 points in December to an elevated +14.
NZ: While still low, the RBNZ inflation expectations survey pushed higher through the back half of 2020. Markets expect that there will be a further rise in the March quarter survey. Inflation surprised to the upside in the December quarter and supply disruptions have boosted the prices of some goods.
China: A big month of lending ahead of Lunar New Year should see January new loans push to CNY 3500.00bn. Meanwhile, January M2 money supply is set to maintain momentum (market f/c: 10.0).
US: The January NFIB small business optimism index should get a boost from recent success in controlling infections (market f/c: 97.5). The market expects that December JOLTS job openings will remain broadly stable at 6400. Volatility in initial claims and employment data point to ongoing churn in the labour market.