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OVERNIGHT MARKET SNAPSHOT FOR WEDNESDAY 16/12/20
- SPI200 (Dec) overnight futures up 45 pts to 6682
- SP500 up 47.13 pts to 3694.62
- NASDAQ up 155.02 pts to 12,595.06
- Dow Jones up 337.76 pts to 30,199.31
- FTSE100 down 18.51 pts to 6513.32
- DAX30 up 139.71 pts to 13,362.87
- GOLD futures US session (Dec) up $24.90 to $1853.60 an ounce
- COPPER futures US session (Comex Mar) up $0.0177 to $3.5442 a pound
- OIL futures US Session (Nymex Jan) up $0.57 to $47.56 a barrel
- CRB Index up 0.78 pts to 163.02
- AUDUSD trading at 0.7559
- EURUSD trading at 1.2157
- GBPUSD trading at 1.3461
- USDJPY trading at 103.6300
- USD Index US Session (ICE Dec) down 0.282 to 90.373
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US indexes rallied from the open as traders were upbeat about stimulus to keep the rally going into the new year as the NASDAQ was boosted by a strong rally in Apple. Traders came out from the opening bell as expectations are growing for a new stimulus package and the final round of negotiations may be underway. Nancy Pelosi invited other top congressional leaders to meet later on Tuesday (US time) to hopefully hammer out a $1.4 trillion deal. Traders are also looking past the growing numbers of covid cases as the vaccine gets rolled out. Moderna’s vaccine looks set for regulatory authorization this week which also supported sentiment. Much of Europe will have to weather tighter restrictions for longer during the holiday season to limit the spread of the virus. The DOW closed up 1.13% while the broader SP500 ended up 1.29% and the Nasdaq closed up 1.25% for the session. In Europe, major Indexes were supported by positive sentiment towards vaccines while the FTSE100 suffered thanks to stricter covid restrictions.
The USD Index found selling pressure to continue the move down from the start of the week. The hopes and sentiment for stimulus by years end has pressured the dollar down through the 90.650 area with sellers eyeing off new lows and a move through 90.000. Traders continue to be risk on into shares as low bond yields and vaccines point to a positive 2021 for growth and will be watching the last FOMC meeting tonight for continued easy policy. The EURUSD continues to struggle with the 1.2170 area as sellers capped the action into the zone. Expect to see a break if the USD continues lower but for now minor support is holding at 1.2122. The GBPUSD was also supported by the weakness into the USD and also by Brexit hopes. Traders became more optimistic that a Brexit deal could be reached ahead of the Dec 31 deadline. Price tested through the 1.3300 zone before buyers ramped price higher to confirm the level as a higher low. This may suggest that we will see higher prices through 1.3500 in the near term. The AUDUSD was sold lower in the Asian session yesterday as the ASX came under pressure. Price broke key short term support around 0.7520 before bouncing back and making its way back up to highs through European and US trade. The move lower flushed out some buyers stop levels before US indexes rallied and continued the risk on sentiment. If price holds another higher low today, expect to see bulls attempt a break up through 0.7575 area. The USDJPY moved lower off the 104.150 area as sellers ramped up the pressure. If the USD continues to find sellers today, then a break through to new lows is on the cards. Price is extended so we may see some profit taking from sellers into the 103.500 area.
SPOT GOLD found the USD weakness that bulls was looking for and ended the session on highs. Price held up the previous session above the 1824 area and bears had every reason to break the level but could not. As soon as they came to that realization, buyers applied pressure and pushed price higher. Expecting to see some continuation today with the the trend up being held at 1844. Crude Oil bulls were happy to continue to look past short term problems and focus on longer term demand increases. Price is back up around previous highs at 47.74 but this time looks more supported and set to continue higher…of course a weaker dollar will help. Copper floundered considering the moves in Oil and Gold but still looks set for a push up to new highs as long as the 3.5000 area holds. Looks to be some profit taking although new buyers are happy to soak it up.
Cryptocurrencies had a generally good session as buyers continue to build for another leg higher. Bitcoin is currently trading at $19429.5 up 1.14% while Ethereum is at $588.02 up 0.15% and Ripple suffered as sellers jumped with price trading at $0.47457 down 4.15%.
The ASX200 came under pressure from the open yesterday and extended the losses into the close as the index ended the day down 28.9 points to 6631.3. The biggest drag in the action was from the Resources, Metals and Mining and Energy sectors. Falling stocks outnumbered advancing ones by 879 to 423 and 354 ended unchanged.
The ASX200 is expected to open up 45 points as the US rallies hard from the open in a risk on tone.
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ECONOMIC DATA OUT TODAY (AEDT)
AUD Flash Manufacturing and Services PMI 9am
JPY Trade Balance 10:50am
GBP CPI and PPI Data 6pm
EUR French Flash Manufacturing and Services PMI 7:15pm
EUR German Flash Manufacturing and Services PMI 7:30pm
EUR Flash Manufacturing and Services PMI 8pm
GBP Flash Manufacturing and Services PMI 8:30pm
EUR Trade Balance 9pm
USD Retail Sales Data 12:30am
USD Flash Manufacturing and Services PMI 1:45am
USD Fed Funds Rate, FOMC Economic Projections and Statement 6am
USD FOMC Press Conference 6:30am
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SPI200 INTRADAY LEVELS TO WATCH
