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OVERNIGHT MARKET SNAPSHOT FOR FRIDAY 3/07/20 (as at 7:15am AEST)
- SPI200 (Sept) overnight futures up 35 pts to 6048
- SP500 up 14.15 pts to 3130.01
- NASDAQ up 53.00 pts to 10,207.63
- Dow Jones up 92.39 pts to 25,827.36
- FTSE100 up 82.40 pts to 6240.36
- DAX30 up 347.89 pts to 12,608.46
- GOLD futures US session (Aug) up $7.10 to $1787.00 an ounce
- COPPER futures (Comex Sept) up $0.017 to $2.734 a pound
- OIL futures US Session (Nymex Aug) up $0.47 to $40.29 a barrel
- CRB Index up 1.46 pts to 140.60
- AUDUSD trading at 0.6925
- EURUSD trading at 1.1237
- GBPUSD trading at 1.2469
- USDJPY trading at 107.5300
- USD Index US Session (ICE Sept) up 0.048 to 97.203
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US indexes were lifted into the open on the back of positive jobs data but then gave up most of the gains into the close. At a glance the employment data was positive with more jobs added than expected although there were also more people claiming unemployment benefits than analysts thought. The initial positivity was offset by the resurgence of US coronavirus cases which could erase the employment gains and show up in next months figures as many states go back into lockdown or pause openings. It seems that many traders were happy to lock in some gains into the long weekend as Indexes hit there highs within the first 30 mins and then came under selling pressure for the majority of the session into the close. The DOW closed up 0.36% while the broader SP500 was up 0.45% and the Nasdaq also ended up 0.52% for the session. In Europe, major Indexes were also lifted into the open thanks to a positive Asian session as buyers were out in force. Indexes were boosted into the close after the US employment data release but did not see the selling into the US close so expect a weak open in the coming European session and for prices to back off from key resistance zones on both the FTSE and DAX.
The USD Index regained some of its safe haven appeal as price spiked higher after the employment data and continued higher as Indexes were sold off. The dollar initially moved lower through Asian and European trade to clear out more buyers before the spike up but we see the potential for further lows from current extended levels. The EURUSD did find some strength early in the European session before being hit hard after the US jobs data on the back of the dollar rally. The clean out of 1.1290 and then fall may point to coming pressure on buyers especially if the USD finds further safe haven buying due to covid-19 fears. The GBPUSD moved up into resistance at 1.2530 as expected before finding pressure from the rally in the USD. Price fared better than the Euro on the selloff and found a bid zone at 1.2460. If this level does not hold today then expect a move down to the 1.2390 zone. The AUDUSD had another choppy session which reflects the growing concern for pressure from the resurgence in virus numbers. Price action cleaned out highs at 0.6945 before rejecting higher levels on the US selloff into the close. If price holds the 0.6930 zone and starts to move lower then expect a break of 0.6905 and potentially lower levels. The USDJPY initially gained on the back of the dollar rally but was then quick to give up the gains under YEN buying pressure. A break below 107.340 will lead to lower levels as the selling pressure piles on the action.
SPOT GOLD ended higher with an initial selloff being saved by the US share market fall and also some safe haven buying into the precious metal. Price rallied along with the USD which we find interesting and signals that bulls may be in control for now. Price action did its usual trick to ‘wash and run’ meaning that price cleaned out support before rallying up to close near its intraday highs. Crude Oil was very choppy again and traded in line with the fortunes of the DOW. Price looks supported as any pullback was supported at minor higher levels. Price has been very choppy up off the 37.50 zone, especially around the highs above $40, and we expect that buyers will come under pressure quickly if the US share market takes a hit. Copper is showing signs of exhaustion as price could not make new highs in the Asian and European session as the Dollar was falling but was then quick to selloff as the Dollar rallied. This may be just a clean out of recent buyers before another higher low holds. Coming price action will be telling.
Cryptocurrencies gave up some of the recent gains with the selloff in the stock market into the US close. Bitcoin is currently trading at $9080.5 down 1.74% while Ethereum is at $226.30 down 2.14% and Ripple is at $0.17463 down 1.08%.
The ASX200 had a much stronger day than many expected with the Index rallying from the open to end the day up 98.3 points or 1.66% to 6032.7. Gains in IT and Financials led the ASX higher as all sectors ended with gains. Rising stocks outnumbered declining ones by 812 to 407 and 318 ended unchanged. Trade balance data out weighed on the AUDUSD for a short period before buyers lifted price to new intraday highs.
The ASX200 is expected to open up 40 points after the SPI200 continued higher into the US close to add to the days gains.
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ECONOMIC DATA OUT TODAY (AEST)
AUD Retail Sales 11:30am
CNY Caixin Services PMI 11:45am
EUR German Final Manufacturing PMI 5:55pm
EUR Final Services PMI 6pm
GBP Final Services PMI 6:30pm
EUR ECB President Lagarde Speaks 8:40pm
USD Bank Holiday
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SPI200 INTRADAY LEVELS TO WATCH
