By Adam Taylor
Japanese equities rose following the market holiday. Prices are also benefiting from the recent rise in US Treasury Yields.
Both the S&P 500 and NASDAQ indexes continue to print record highs. It appears much of this is related to a technical breakout of the trading range established back in July. Some speculate this rally is also fuelled by recent activity by the US Federal Reserve.
In the FX market, a relatively quiet trading session.
RBA leaves the cash rate unchanged at 0.75%, as was generally expected by most analysts. A brief statement from the RBA says “says there will be no changes to official agreement on monetary policy due to global uncertainties.”
Incidentally, the Aussie finished the day as the best performer up 0.3% currently trading towards the 0.6920 region.
The Japanese Yen was weakest overnight down 0.74%
AUDUSD (Hourly Chart)
Oil – It appears OPEC has lowered their demand outlook global oil growth, to 104.8 million barrels per day (b/d) by 2024, and 110.6 million b/d by 2040. This latest news doesn’t appear to have affected oil prices much in the short-term, but speculation of ever-increasing supply may not bode well for longer-term prospects.
Oil recently made our Go Markets Chart of The Day last week, watch the video here
USOUSD (Hourly Chart)
Overnight, the precious metal failed to conquer the psychological level of $1515 an ounce, which seems to be weighing heavy in today’s market. At the start of today’s session, we are seeing a reasonable sell-off in the gold space with a push towards the 200 Day Moving Average. Naturally, we would expect the market to find some support around these levels, given the round number element of the price level.
XAUUSD (Hourly Chart)
Sources: GO MT4, Bloomberg
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