10 Nov: US$, stocks heavy as possible Senate tax-bill delays spook investors. Australian SOMP coming up.

By | November 10, 2017

 

Both US Stocks and the dollar are weaker on Thursday as fears grow that the Senate Republican tax plan may delay corporate rate cuts by a year, and if this becomes fact then we could be in for a decent reversal of the recent trend that has underpinned both in recent weeks. The selloff in stocks saw the DSJI fall around 250 points at one stage although by the end of the session about half those losses had been recovered. The US$ is under pressure too, with some safe haven demand ensuring that the Yen and the Chf are stronger today, as is Gold, which is up by around 0.25%.  The Euro is higher, but remains below the critical head/shoulder neckline level, while Sterling is in the doldrums as UK politics and Brexit combine to ensure that any upside momentum is limited. In the oil market, WTI is pretty much unchanged after a choppy sideways trade.

Friday could be a relatively quiet session given the Veterans Day holiday (Saturday) and very little data to come from the US, although markets will be open and any headlines on the tax-bill are likely to have an impact. Before then though , Asia will kick off with the NZ Electronic Card Retail Sales and the Australian Statement on Monetary Policy which may provide a directional move for the Aud$. After that it becomes a rather thin calendar, with the China New Loans and the UK Manufacturing/Industrial Production figures being the only real points of interest. The Provisional Michigan Consumer Sentiment Index for November will be the sole piece of US data although interest may be limited. (Expect 100.7). Have a good weekend.

CURRENCIES
EURUSD: 1.1640
Res  1.1655  1.1675  1.1690
Sup  1.1620  1.1600  1.1585
USDJPY: 113.40
Res  113.50  113.70  114.05
Sup  113.10  112.95  112.70
GBPUSD: 1.3147
Res  1.3165  1.3200  1.3235
Sup  1.3120  1.3085  1.3060
USDCHF: 0.9942
Res  0.9965  0.9990  1.0020
Sup  0.9920  0.9890  0.9870
AUDUSD: 0.7680
Res  0.7700  0.7730  0.7760
Sup  0.7650  0.7625  0.7600
NZDUSD: 0.6952
Res  0.6965  0.6985  0.7005
Sup  0.6935  0.6915  0.6890
INDICES / COMMODITIES
S&P: 2584
Res  2590  2595  2600
Sup  2575  2570  2565
DJI: 23413
Res  23420  23470  23535
Sup  23375  23320  23260
ASX SPI: 6018
Res  6030  6045  6060
Sup  6000  5985  5965
XAUUSD: 1285
Res  1290  1295  1300
Sup  1280  1275  1270
XAGUSD: 17.00
Res  17.15  17.25  17.35
Sup  16.90  16.80  16.70
WTI: 57.06
Res  57.50  57.90  58.70
Sup  56.70  56.35  55.75