5 Dec: More new highs for stocks, US$ firm after tax plan vote. A busy session ahead for the Aud, led by the RBA

By | December 5, 2017

 

Having gapped lower at the open on Monday following the weekend Senate vote on the tax bill, the US$ has traded in a relatively tight range against most pairs although Sterling remains relatively underpinned after comments from the EU’s chief Brexit negotiator, Guy Verhofstadt, that there is a 50/50 chance of making progress in the negotiations. Elsewhere, the Swiss Franc and Yen are trading broadly lower as risk appetites return. In other markets, stocks are rangebound, after having briefly made yet another new all time high, while the metals are steady and oil prices headed lower due to concerns that rising US shale output could dampen efforts to lower global oil supplies.

Tuesday could be busy, particularly for the Aud$ which kicks off with the AIG Services PMI, Current Account, the Oct Retail Sales and the New Home Sales, to be followed by the Caixin China Services PMI and the RBA Interest Rate Decision. No change is expected from the RBA and the focus will be on the Statement. Europe will then look to the Services/Composite PMIs for guidance, along with the EU Trade Balance, ahead of the US session when the Services/Composite PMIs and the ISM Non-Mfg PMI will be in focus. Kiwi traders should note that the Global Dairy Trade Index will be released at midday- London time.

CURRENCIES
EURUSD: 1.1852
Res  1.1875  1.1890  1.1900
Sup  1.1830  1.1805  1.1775
USDJPY: 112.58
Res  112.85  113.15  113.35
Sup  112.55  112.30  112.00
GBPUSD: 1.3464
Res  1.3495  1.3520  1.3550
Sup  1.3445  1.3430  1.3410
USDCHF: 0.9858
Res  0.9865  0.9880  0.9900
Sup  0.9835  0.9805  0.9785
AUDUSD: 0.7593
Res  0.7615  0.7635  0.7645
Sup  0.7585  0.7575  0.7555
NZDUSD: 0.6847
Res  0.6870  0.6895  0.6915
Sup  0.6820  0.6800  0.6780
INDICES / COMMODITIES
S&P: 2646
Res  2650  2660  2670
Sup  2640  2630  2620
DJI: 24358
Res  24400  24535  24600
Sup  24325  24245  24160
ASX SPI: 5976
Res  6000  6020  6040
Sup  5970  5950  5930
XAUUSD: 1276
Res  1280  1285  1290
Sup  1270  1265  1260
XAGUSD: 16.34
Res  16.55  16.80  17.00
Sup  16.25  16.00  15.85
WTI: 57.41
Res  57.90  58.35  58.85
Sup  57.20  56.80  56.30

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