Global sentiment overnight was controlled by rumours around the upcoming OPEC deal. At the World Energy Congress in Istanbul, the world’s largest oil producers, Russia and the Saudi Arabia, reinforced their willingness to cut production in an attempt for higher prices. The Saudi Oil Minister was optimistic and referenced non-OPEC producers showed a willingness to cooperate sighting an oil recovery of $60 a barrel by the end of 2016. Europe’s largest producer, Norway, advised it was “a bit early to start celebrating”, as details of an agreement are still some way off. This news rallied price from 49.18 on Friday to a yearly high 51.58. Price sits at 51.14.
Oil strength was recognised across all stock markets. US stocks held on to gains with the S&P up 0.54%, Nasdaq up 0.8%, and Dow up 0.58%
Overnights largest mover was CAD/JPY. The combination of Canadian, oil exporting strength, and Japanese, oil importing weakness saw a 1.59% change in the pair. This was a comeback for the CAD which reached a multi-year low at 75.396. Bulls can target the 100 day moving average at 79.537 whilst being mindful it hasn’t reached that level since late May and a failed break was resisted at78.87. Friday also supported positive Canadian employment numbers.
Risk on trading combined with an increase in key commodities, and emerging market assets moved AUD/USD higher to close up 0.32% at 0.7607. Main drivers were Iron ore and Crude that gained over 2.5% whilst copper rose almost 1.5%. Longs must be wary of key resistance at 0.7632, the 10 day moving average with break targets at 0.7690 before 0.7710
