19 Dec. Stocks at new highs, US$ unfazed as the tax bill looks a done-deal. RBA Minutes/Bulletin ahead. IFO later.

By | December 19, 2017

 

US stock markets headed up to yet new all-time highs on Monday as US Republican lawmakers move ever closer to passing the long awaited tax plan although the dollar did not seem to notice and whipped around, mostly lower – in thin conditions -, on concerns about the bill’s impact on economic growth and interest rates. Sterling in particular halted its recent slide and found some upside momentum although, as with the Euro the rally dissipated somewhat later in the day. In other markets, both the S+P and the DJI headed to new all-time highs, while the Nasdaq surpassed the 7,000 point mark for the first time. Elsewhere, the metals were a bit higher on the back of the soft dollar while WTI remains rangebound either side of $57 p.b.

The Kiwi will be the initial focus on Tuesday, with the release of the Q4 WBC Consumer Survey and the December ANZ Activity Outlook. It will also be closely watched later in the day when the Global Dairy Trade Index is released, midday London.  Before that, following on from the early NZ data, the RBA Minutes and the final RBA Bulletin of the year will be released, which may inspire some interest in the Aud$. The EU focus will be on the German IFO Business Climate/Expectations while from the US we get the Housing Starts, Building Permits, Current Account, and the API weekly Crude Oil Stock Inventory.

CURRENCIES
EURUSD: 1.1783
Res  1.1810  1.1835  1.1860
Sup  1.1750  1.1715  1.1685
USDJPY: 112.56
Res  112.80  113.00  113.30
Sup  112.40  112.20  112.00
GBPUSD: 1.3385
Res  1.3420  1.3465  1.3520
Sup  1.3365  1.3335  1.3300
USDCHF: 0.9859
Res  0.9880  0.9905  0.9935
Sup  0.9840  0.9820  0.9795
AUDUSD: 0.7667
Res  0.7680  0.7700  0.7730
Sup  0.7650  0.7635  0.7615
NZDUSD: 0.6995
Res  0.7010  0.7035  0.7055
Sup  0.6975  0.6955  0.6935
INDICES / COMMODITIES
S&P: 2696
Res  2700  2705  2710
Sup  2685  2680  2675
DJI: 24819
Res  24890  25000  25100
Sup  24720  24625  24525
ASX SPI: 6070
Res  6075  6100  6125
Sup  6050  6025  6000
XAUUSD: 1261
Res  1265  1270  1275
Sup  1255  1250  1245
XAGUSD: 16.13
Res  16.20  16.40  16.55
Sup  16.00  15.85  15.70
WTI: 57.13
Res  57.45  57.80  58.30
Sup  56.90  56.50  56.05