The Australian Dollar closed tight on 0.7400 after trading in a … range between 0.7418 resistance and 0.7311 support as sellers were squeezed among likely profit taking. Impressive US home sales data was offset by a surge in base metal prices led by iron ore. The pair seems glued to the underside of the 100 hour moving average containing the pairs retracement providing an overriding bearish signal. RBA assistant governor Kent outlined positive expectations for unemployment and GDP, but citied spare capacity in the labour market as an issue in a speech overnight. AUD/NZD rallied 70 pips before retracing to close at 1.0470
Stock markets continued on to further record highs as S&P up 0.22%, Nasdaq up 0.33%, and Dow 0.35% as Wall Street continues to follow through on Trumps fiscal stimulus expectations. Telecoms gained over 2% as the largest earner. Based on futures the market now implies 100% odds of a fed hike in December.
Oil traded down 0.77% amid worries Iran and Iraq will collude to sabotage the deal. This comes after strong gains since the weekend and positive signals from leading members. A short 6 month deal seems desirable for a number of parties with an output likely but by 4-4.5% exempting Libya and Nigeria.
