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OVERNIGHT MARKET SNAPSHOT FOR THURSDAY 23/01/20 8:30am AEDT
- SPI200 (Mar) overnight futures down 15 pts to 7061
- SP500 up 0.96 pts to 3321.75
- NASDAQ up 12.96 pts to 9383.77
- Dow Jones up 9.77 pts to 29,186.27
- FTSE100 down 38.78 pts to 7571.92
- DAX30 down 40.12 pts to 13,515.75
- GOLD futures (Feb Contract) up $0.60 to $1558.70 an ounce
- COPPER futures (Comex Mar) down $0.024 to $2.770 a pound
- OIL futures US Session (Nymex Mar) down $1.72 to $56.66 a barrel
- CRB Index down 1.53 pts to 180.03
- AUDUSD trading at 0.6844
- EURUSD trading at 1.1092
- GBPUSD trading at 1.3137
- USDJPY trading at 109.8800
- USD Index US Session (ICE March) down 0.012 to 97.282
US Indexes opened the session on a strong footing thanks to a home sales data showing a jump to their highest level in almost two years, although bulls could not hold the gains into the close and the big three Indexes ended flat. Housing has been a weak link in the economy for a while and is now gathering some steam while Manufacturing continues to suffer and cause problems. Bulls seem to be taking any contagion of the virus in their stride for now and remain focused on data. The DOW gave up a strong open to close down 0.03% while the broader SP500 was up 0.03% and the Nasdaq closed up 0.14% for the session. In Europe, key indexes came under pressure to end the session lower as Trump threatened to impose high tariffs on imports of cars from the EU. Speaking at WEF, the US president warned of tariffs if the EU did not agree to a trade deal to re-balance Americas global trade relationships. Germany’s ambassador to the US said that the EU will respond to any additional tariffs with it own duties on goods and services.
Going into the start of the year, traders believe that global easing is over and things are looking a lot better but overnight, the Bank of Canada held interest rates steady while also hinting at a possible easing amid and economic slowdown. The news had traders re-assessing global growth and analyzing whether easing could occur elsewhere too although the bond market was happy to hold bond yields relatively unchanged.
The USD moved lower during the European session then spiked into the open of the US before giving back the gains to drift lower and end down on the day. Price is showing signs of failing up at resistance but the bulls are still holding minor higher lows with the aim of pushing the USD higher. The EURO was choppy moving between gains and losses in lock step with the USD. Price is testing previous key lows around 1.1070 to see if buyers make a stand. The GBP was in a bullish mood after a positive data release supported the pair. The Pound rally was helped by weakness in the dollar but then when the dollar rallied the Pound managed to consolidate the highs in a show of strength. The AUD traded in line with the Dollar moves and managed to find some buyers into the close to hold above support…for now…at 0.6840. Bulls will need to push up through 0.6856 highs to give bears something to think about. The USDJPY moved lower to give up gains from a rally in the Asian session. The dollar is the mover of the pair at the moment as safe haven buyers stay out and virus concerns are negated.
Gold managed to grind its way back up towards the 1562 level holding minor higher lows. If price can convincingly break up through 1560 then we expect to see a new run higher as a base of support is now in place. If sellers defend the level then we may see a deeper correction play out in the short term. Crude Oil came under fire as global supply concerns eased and traders expect that coming data will show an oversupply. Price punched straight through support into the open of the US session to end on its lows. Copper also continued to come under pressure to hold lower highs as recent buyers unwound their bullish bets. Price is now right on support around 2.7650 so we expect to see a reaction from buyers and see if they can hold the level.
Cryptocurrencies generally traded in a narrow range holding around the previous sessions levels. Bitcoin is currently trading at $8663.1 down 0.56% while Ethereum is at $168.06 down 0.12% and Ripple is holding around $0.23626 down 0.65%.
The ASX200 spent the first hour or so bouncing around yesterday before catching most traders off guard with a strong rally into the close. It was all one way traffic as the index smashed into new all time highs to close at 7132.7 up 66.4 points. The Index managed to brush aside any virus related fears but will be poised today ahead of the employment data at 11:30am. Leading the charge higher was Consumer Staples, then IT and the Healthcare sector while gold was the only sector to end in negative territory. Rising stocks outnumbered declining ones by 693 to 484 and 344 ended unchanged.
The ASX200 is expected to open down 15/20 points as the SPI200 worked its way lower off the days highs. Expect the action to get quiet coming into the employment release.
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ECONOMIC DATA OUT TODAY (AEDT)
JPY Trade Balance 10:50am
AUD Employment Change and Unemployment Rate 11:30am
All WEF Annual Meetings Day 3
EUR Main Refinancing Rate and Monetary Policy Statement 11:45pm
EUR ECB Press Conference 12:30am
USD Unemployment Claims 12:30am
USD Crude Oil Inventories 3am
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SPI200 INTRADAY LEVELS TO WATCH
