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.
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|ASX SPI: 5951|