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OVERNIGHT MARKET SNAPSHOT FOR WEDNESDAY 22/07/20
- SPI200 (Sept) overnight futures down 62 pts to 6076
- SP500 up 5.46 pts to 3257.30
- NASDAQ down 86.73 pts to 10,680.36
- Dow Jones up 159.53 pts to 26,840.40
- FTSE100 up 8.21 pts to 6269.73
- DAX30 up 124.91 pts to 13,171.83
- GOLD futures US session (Aug) up $25.80 to $1843.20 an ounce
- COPPER futures (Comex Sept) up $0.0468 to $2.9623 a pound
- OIL futures US Session (Nymex Aug) up $1.15 to $41.96 a barrel
- CRB Index up 1.81 pts to 142.50
- AUDUSD trading at 0.7134
- EURUSD trading at 1.1530
- GBPUSD trading at 1.2733
- USDJPY trading at 106.7800
- USD Index US Session (ICE Sept) down 0.654 to 95.118
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US indexes edged higher but was still well contained considering the move up in Asian trade. Traders were buoyed by hopes of further stimulus from the US government to support the economic recovery. A drop late in the session in tech stocks weighed on the action and pushed Indexes lower into the close off intraday highs. The continued rally into shares leaves the broader market within striking distance off all time closing highs with the SP500 just under 4% off the February levels. The DOW closed up 0.60% while the broader SP500 was up 0.14% and the Nasdaq gave up some of the previous session gains ending down 0.81% for the session. In Europe, major Indexes were boosted by the approval of the EU stimulus package although it seems that a lot of it was already factored in to price. The FTSE was positive on the open but drifted lower into the close while the DAX also drifted lower but fared better after a solid opening rally. A rising Euro should also provide support as companies may start to look more attractive than US counterparts with expectations that the EU is on track for recovery and seems to have a second virus wave under control.
The USD Index continued to meltdown as the appeal of the Euro weighed on the currency. The USD is on the verge of a strong move down if buyers do not step in around the 95 zone. The move down will be good for commodity prices which are also being supported by the continued risk on sentiment. The safe haven nature of the dollar is well and truly off the cards as continued stimulus from central banks weighs on price. The EURUSD rallied hard once the USD started to breakdown as traders were happy with the new EU fund and what it means for future stimulus. The move up took out some key highs so buyers will now be looking for the party to continue to the 1.1800 level longer term. This will depend on the action into the USD which may prompt some profit taking into the Euro on a bounce. The GBPUSD took out resistance in a clean move as buyers held higher lows. Price is now gunning for the 1.2810 zone which is previous highs from the start of June. Price is also gaining on Brexit hopes as an ambitious target for an agreement is set for October. The AUDUSD rallied as the USD fell through support. The risk on commodity currency continues to do well with the next stop on the upside around 0.7400. It will of course depend on the USD and whether price finds support but at this stage the momentum to the upside on the Aussie is strong. The USDJPY was hit along with the USD and did react off support around 106.600. If buyers are not interested then expect to see a break of support in the near term.
SPOT GOLD had a big session as the USD went into meltdown mode. Price rallied early in anticipation of weakness into the USD to smash through highs. Expect to see local Aussie goldies do well even though Gold in AUD terms is choppy and not moving higher. Crude Oil finally broke up and out of the recent range to move up through 41.50 highs. If the risk on sentiment continues then Oil the rally will drag in more buyers. Copper also rallied being supported by the weak USD. Price moved up through 2.9500 so will have the 3.000 level in its sights.
Cryptocurrencies rallied with Bitcoin leading the charge and breaking key resistance levels. Bitcoin is currently trading at $9373.7 up 2.15% while Ethereum is at $245.21 up 3.56% and Ripple is at $0.19825 up 1.47%.
The ASX200 launched higher yesterday right from the opening bell. The index could not be stopped with buyers finding no resistance and closing the index up 154.7 points or 2.58% to 6156.3 on the back of stimulus news. All sectors ended the day with gains with IT up 5.73% followed by Gold and Consumer Discretionary both up over 3%. Rising stocks outnumbered declining ones by 902 to 356 and 310 ended unchanged.
The ASX200 is expected to open down 70 points as the SPI200 gave up a lot of the gains from the days session.
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ECONOMIC DATA OUT TODAY (AEST)
AUD Retail Sales 11:30am
CAD CPI Data 10:30pm
USD Existing Home Sales 12am
USD Crude Oil Inventories 12:30am
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SPI200 INTRADAY LEVELS TO WATCH
