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OVERNIGHT MARKET SNAPSHOT FOR MONDAY 13/01/20
- SPI200 (Mar) overnight futures down 52 pts to 6817
- SP500 down 9.35 pts to 3265.35
- NASDAQ down 24.57 pts to 9178.86
- Dow Jones down 133.13 pts to 28,823.77
- FTSE100 down 10.27 pts to 7587.85
- DAX30 down 11.75 pts to 13,483.31
- GOLD futures (Feb Contract) up $5.80 to $1560.10 an ounce
- COPPER futures (Comex Mar) up $0.008 to $2.810 a pound
- OIL futures US Session (Nymex Feb) down $0.52 to $59.04 a barrel
- CRB Index up 0.57 pts to 184.13
- AUDUSD trading at 0.6901
- EURUSD trading at 1.1121
- GBPUSD trading at 1.3064
- USDJPY trading at 109.4500
- USD Index US Session (ICE March) down 0.087 to 97.075
Renewed tensions between the US and Iran saw recent buyers cut some risk and lock away gains off all time highs from the open. US Indexes were lower to end the week after slightly weaker than expected employment numbers and after the US said that they were imposing additional sanctions on Iran as a result of recent missile attacks on US troops in Iraq. The US also rejected an Iraqi request to pull out the troops as Iraq are set to further bear the brunt of any fighting. The DOW closed down 0.46% while the broader SP500 was down 0.29% and the Nasdaq ended down 0.27%. In Europe, Indexes took a breather ahead of the US employment data as bulls stayed on the sidelines. The numbers showed slower than expected jobs growth although its enough to keep the US economy ticking along nicely to support global growth. Traders will be focused now on the signing of the US/China Phase 1 trade deal.
The USD took a hit after the Employment number and then bounced straight back clearing out some buyers. The sellers then stepped in to push price lower through the session which we expect to continue in the coming days. The EURO gained on the back of the dollar weakness as price pushed up through minor lower highs to start the squeeze on the sellers. If the dollar weakness continues, expect the Euro to test up towards the 1.1150 then 1.200 zones. The GBP had a very choppy session with little reaction from the bulls to the US data. Buyers seems to have been capped up around 1.3090 in the short term so expect to see some lower levels as Brexit continues to trouble the currency pair. The AUD lifted during the Asian session and continued the momentum through European trading. The dollar weakness gave the Aussie another lift before sellers stepped in around the 0.6910 zone into the end of the US session. We expect the Aussie to be supported thanks to the phase 1 deal signing later this week….excluding no surprises. The USDJPY was doing well for the bulls until the US data release when the USD started to fall. We expect to see further downside through dollar weakness as there is a lot of fuel built up on the long side ready to sell to pressure price lower.
Gold lifted being boosted by the dollar fall and also by a minor safe haven bid due to Iran tensions. It will be difficult to expect the precious metal to run up hard as both the US and Iran have said that they want to avoid further conflict. In saying that, dollar weakness should cap any downside movement in gold. Crude Oil continued to be under pressure and test lows around 58.80 holding ever so slightly lower highs. We expect price to be supported on news that OPEC is potentially going to make deeper production cuts than expected for Q1 2020. Copper spiked after the data as the dollar fell but buyers could not hold onto the gains into the US close. We expect to see support of the metal ahead of the trade deal signing.
Cryptocurrencies consolidate the recent gains giving hope for the bulls that a solid run higher is on the cards for 2020. Bitcoin is currently trading at 8148.5 down 0.08% while Ethereum is at $ 144.78 down 0.65% and Ripple is lagging at $0.21301 down 2.20%.
The ASX200 ended the week on a strong note as the ASX200 finished at new all time highs. The index started the session stronger than expected to continue on from the previous sessions strength to end up another 54.8 points to 6929. Again, the healthcare sector was an out performing sector being followed by Consumer Staples and Telecom Services while the Gold sector took another hit lower. Retail Sales data came out better than expected which helped to support the buyers for the day.
The ASX200 is expected to open down 55 points after the weak US session dragged the SPI200 lower in to the overnight close.
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ECONOMIC DATA OUT TODAY (AEDT)
AUD MI Inflation Guage 11am
GBP GDP, Manufacturing Production, Goods Trade Balance and Industrial Production 8:30pm
CAD BOC Business Outlook Survey 2:30am
USD Federal Budget Balance 6am
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SPI200 INTRADAY LEVELS TO WATCH
