6 Dec: US$ remains firm on tax bill hopes. Stocks lower at the end of the US session. Australian Q3 GDP ahead.

By | December 6, 2017

 

The US$ is firm on Tuesday, underpinned by optimism surrounding  the US tax reform, with traders seeming to think that it is just a matter of time before the final bill reaches Donald Trump for approval. The solid performance came about despite the soft US Services data, showing that the ISM non-manufacturing purchasing managers’ index showed a reading of 57.4 for November compared to 60.1 in October, missing economists’ expectations for a reading of 59. In other markets, the metals remain under pressure from the stronger dollar while stocks have given up early gains to head lower at the end of the US session. WTI has had a tight, rangebound session.

Wednesday could be another busy day for the AUD$, with the Q3 GDP (exp 0.7%qq, 3.0%yy) and the October New Home Sales both due. Note that Copper fell hard on Tuesday, to a 2 month low, which may  continue impact the Aud$ after already rejecting the rally seen earlier in the session. Later in the day, Europe will look to the ECB Non-Monetary Policy meeting for guidance, along with the German Factory Orders and a speech from the ECB’s Praet, while the US will focus on the ADP Jobs data (exp 190K) as we approach Friday’s NFP release. Oil traders will look to the EIA weekly crude oil stock change for guidance.

CURRENCIES
EURUSD: 1.1825
Res  1.1840  1.1875  1.1890
Sup  1.1800  1.1775  1.1735
USDJPY: 112.54
Res  112.85  113.10  113.35
Sup  112.35  112.15  112.00
GBPUSD: 1.3442
Res  1.3460  1.3480  1.3500
Sup  1.3425  1.3400  1.3370
USDCHF: 0.9874
Res  0.9890  0.9920  0.9945
Sup  0.9850  0.9835  0.9820
AUDUSD: 0.7608
Res  0.7615  0.7630  0.7650
Sup  0.7595  0.7580  0.7550
NZDUSD: 0.6879
Res  0.6905  0.6930  0.6945
Sup  0.6850  0.6815  0.6780
INDICES / COMMODITIES
S&P: 2628
Res  2635  2645  2650
Sup  2620  2615  2610
DJI: 24175
Res  24275  24385  24535
Sup  24150  24050  23950
ASX SPI: 5951
Res  5975  6000  6020
Sup  5950  5920  5900
XAUUSD: 1266
Res  1270  1275  1280
Sup  1260  1255  1250
XAGUSD: 16.11
Res  16.25  16.40  16.55
Sup  16.00  15.90  15.75
WTI: 57.65
Res  57.90  58.35  58.85
Sup  57.05  56.75  56.30

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