Good Morning,
Market Headlines
Negative risk sentiment overnight with sharp falls in global equity markets and oil prices. Technology stocks pulled the NASDAQ down 4.1% whilst the S&P 500 dropped 2.4% (lowest point in over a month). Gold collapsed on dollar’s demand, bottoming at $1,906 an ounce then bounced sharply from the level to settle around 1,930. Crude oil prices, in the meantime, fell to fresh 3-month lows with WTI settling at $37 a barrel.
Currencies
AUD/USD: 0.7205 – 0.7297
EUR/USD: 1.1766 – 1.1821
GBP/USD: 1.2985 – 1.3150
USD/JPY: 105.87 – 106.38
USD/CAD: 1.3100 – 1.3232
NZD/USD: 0.6612 – 0.6695
AUD/JPY: 76.42 – 77.52
AUD/NZD: 1.0873 – 1.0918
AUD Thoughts
- AUD/USD remains on the back foot near the lowest since August 26.
- Sino-American tension, US stimulus deadlock and Brexit contribute majorly to risk aversion.
- Wall Street marked heavy losses led by Tesla (down 17%), crude and gold also trade downwards.
- Consumer Confidence and second-tier housing data decorate today’s calendar.
AUD/USD sellers catch a breather while taking rounds to 0.7210-20 trading range, currently around 0.7205, at the start of Wednesday’s Asian session. In doing so, the quote nears the lowest since late-August as challenges to the market’s risk-tone sentiment mount.
A clear break below the 10-week-old support line, at 0.7228 now, drags the AUD/USD prices towards 0.7135-34 support confluence including 50-day SMA and August 20 lows.
Event Risk Data Today
AU – September consumer confidence
AU – August home loans
CA – BOC rate decision
CN – August CPI
US – July JOLTS job openings