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OVERNIGHT MARKET SNAPSHOT FOR FRIDAY 27/11/20 (as at 8am AEDT)
- SPI200 (Sept) overnight futures down 17 pts to 6626
- SP500 Closed
- NASDAQ Closed
- Dow Jones Closed
- FTSE100 down 28.16 pts to 6362.93
- DAX30 down 3.23 pts to 13,286.57
- GOLD futures US session (Dec) up $3.00 to $1808.50 an ounce
- COPPER futures (Comex Dec) up $0.0480 to $3.3575 a pound
- OIL futures US Session (Nymex Jan) down $0.72 to $44.99 a barrel
- CRB Index Closed
- AUDUSD trading at 0.7365
- EURUSD trading at 1.1912
- GBPUSD trading at 1.3357
- USDJPY trading at 104.2400
- USD Index US Session (ICE Dec) up 0.046 to 92.012
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US indexes closed for trade ahead of a scaled back Thanksgiving long weekend giving traders some time to assess holdings and portfolio risk. Traders will be assessing recent vaccine news and whether a Biden presidency will finally bring some political stability. The SP500 is hovering just below all time highs along as traders rotate from large cap tech shares to cyclicals. In Europe, major Indexes held previous sessions highs around key resistance as traders take a breather with the US out of action. The FTSE remains locked just above key support and below highs from the start of June. Buyers are not willing to add further risk it seems until a brexit deal becomes a bit clearer. The two sides are still working towards a deal by the Dec deadline although continue to blame each other for not being more flexible on terms. The DAX has bounced back well from the October selloff and has been consolidating the highs as buyers await a trigger for the break up.
The USD Index moved lower in the Asian session to continue the momentum down before bouncing back above 92.000 in European trade. The move seems to be some squaring up of short sellers into support and lows from early September. The pressure is still on as traders are looking to the Biden administration for new stimulus into Xmas as covid cases continue to rise. We will be watching the 92.000 area to see if buyers start to get more active and build a base for a squeeze higher. The EURUSD moved down off highs around 1.1940 once the USD started to lift off its lows. We will be watching the minor support zone at 1.1890 to see if buyers are going to make a push to September highs around 1.1995. The action for now remains supportive for higher levels. The GBPUSD found a bunch of sellers up at 1.3395 to cap the action prior to a selloff down to 1.3320 as the dollar kicked higher. Price remains in an uptrend and seems to be spending some time consolidating above the 1.3305 zone which would suggest buyers are looking for higher prices. A break back down below 1.3305 will bring in sellers and put the squeeze on recent buyers for a move down. The AUDUSD was happy to hold onto the highs and consolidate the recent move up to the 0.7370 area. With no direction from the US stock market price was range bound and found support at 0.7354 which may lead to a spike higher through 0.7370 today and squeeze out some sellers. The USDJPY meandered lower back into major support and looks ready for a run higher. If we see a push up through 104.350, expect to see some more buyers enter the action and recent sellers race for the door.
SPOT GOLD was locked in a relatively tight range around major support. Buyers continue to shy away from entering new positions which leaves sellers looking for another break lower. If price can not lift off support soon in a strong move then we will be looking for a break lower through 1800 on a stop loss hunt. Crude Oil found some buyers happy to lock in gains off the 46.00 highs. Price took a hit in a quiet session but did manage to find some support down at 44.70. If the lower highs at 45.40 hold then we may see some further pressure from sellers in the coming sessions. Copper charged higher to take out major highs as buyers continue the ramp. As long as the higher low at 3.3255 holds then we expect to see the move up continue. There is the possibility that the spike is a flush of the daily resistance level into the US long weekend so the 3.3255 will be key in coming days.
Cryptocurrencies were smashed lower across the board being triggered by a massive wave of profit taking. Bitcoin is currently trading at $17223.7 down 9.72% managing to recover slightly off the lows. Ethereum is at $520.04 down 12.10% while Ripple was hit hard and is trading at $0.53474 down 17.43%.
The ASX200 found sellers from the open yesterday to move lower into the close and give up all the gains from the previous session. At the end of the day the index was down 46.9 points to 6636.4 with the Financial and Energy sectors seeing some profit taking to lead the charge lower while gold also reversed its fortunes to end higher on some bargain hunting. Rising stocks outnumbered declining ones by 651 to 619 and 366 ended unchanged.
The ASX200 is expected to open down 20 points as the SPI200 was left to drift lower with the lack of direction from the US.
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ECONOMIC DATA OUT TODAY (AEDT)
EUR German Import Prices 6pm
EUR French Consumer Spending and Prelim CPI and GDP 6:45pm
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SPI200 INTRADAY LEVELS TO WATCH
