Attention turns to Australia

December 3, 2019

A stack of data is scheduled for publication today, where interest will be centred around the latest central bank meeting.

The USD weakened overnight, allowing paired currencies to make up some ground. The EURUSD began the week at $1.10212 and remained flat for the first half of the day, slipping to a low of $1.10021 mid-session. The euro took off after that, peaking at $1.10892 late in the day. It has held onto most of those gains and is now trading at $1.10812. The GBPUSD started the week at $1.29087 and edged up to $1.29272 before falling to a low of $1.28956 mid-session. It climbed off those lows, hitting a high of $1.29484 late in the day. It has come off those highs slightly and is now trading at $1.29385.

Indices had a torrid time to start the month, with most majors getting hit. The Dow opened at 28,102.89 and lifted to a high of 28,200.93 mid-session. The Dow remained near those highs for a couple of hours before collapsing over the back half of the day, hitting lows of 27,774.85. It is currently trading at 27,758.00 The Dax was inevitably dragged down by the Dow after opening at 13,263.09. The German index was flat early, edging up to a high of 13,340.38 mid-session. The rot set in shortly afterwards as the Dax tumbled over the next several hours, hitting lows of 12,950.47 late in the day. It has come off those lows slightly and closed at 12,994.25.

The day ahead sees the RBA meet to discuss interest rates. While rates are tipped to remain unchanged, the words spoken by Governor Philip Lowe will be of interest as rates look like heading lower over the short term. QE has also been mentioned as a future tool but has already been ruled out by Lowe.

Data published today includes:

UK – Construction PMI

US – Wards Total Vehicle Sales

Australia – Current Account, RBA Rate Statement

Europe – Swiss CPI, French Government Budget Balance, Spanish Unemployment Change, European PPI


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