{"id":161023,"date":"2019-12-03T12:25:39","date_gmt":"2019-12-03T17:25:39","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=161023"},"modified":"2019-12-03T12:25:39","modified_gmt":"2019-12-03T17:25:39","slug":"aud-explodes-overnight","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/12\/aud-explodes-overnight\/","title":{"rendered":"AUD Explodes Overnight"},"content":{"rendered":"
December 3, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

USD Down on Manufacturing Miss<\/strong><\/b><\/h2>\n

The US dollar has been under pressure over early trading on Tuesday as the reaction from yesterday\u2019s data miss continues. The\u00a0US ISM Manufacturing print<\/a>\u00a0for November came in below expectations at 48.1 vs 49.2 expected.\u00a0Marking the fourth straight month in contractionary territory, the reading is a poor omen for the health of the US economy over the final quarter of the year. USD index trades 97.80.<\/strong><\/b><\/p>\n

Lagarde Say ECB Will Pusruse Inflation Target<\/strong><\/b><\/h2>\n

EURUSD has taken advantage of the fall in USD to trade higher again today, extending yesterday\u2019s gains. Speaking before European Parliament yesterday, new ECB chief Lagarde said that the ECB will be \u201cresolute\u201d in pursuing its goal of 2% inflation and noted that the bank\u2019s accommodative monetary policy stance will remain in place.\u00a0Lagarde heads her first policy meeting this month on the 12th<\/sup>. EURUSD trades 1.1080 last, back above the 1.1024 level once again.<\/strong><\/b><\/p>\n

GBP Rallies on USD Weakness<\/strong><\/b><\/h2>\n

GBPUSD surged higher gain today, benefiting from USD weakness. Uncertainty ahead of the elections continues to obscure price action<\/strong><\/b>. The latest polls show Johnson\u2019s lead having fallen lower into single digits. While the prospect of a surprise Labour win could increase the chances of Brexit being canceled, the outlook for the UK economy is worse as a result of Corbyn\u2019s proposed economic policies. GBPUSD trades 1.2973 last, challenging the recent highs.<\/p>\n

Equities Suffer Heavy Losses<\/strong><\/b><\/h2>\n

Risk assets have stabilized a little so far, however, the tone remains weak on the back of the heavy sell-off seen yesterday.\u00a0Another bout of US data weakness, along with news that China canceled a US military visit over the US backing of the Hong Kong protesters, has soured the mood on Tuesday.<\/strong><\/b>\u00a0The market is now concerned about the likelihood of a deal being done given the dispute over Hong Kong. SPX500 trades 3119.73 last.<\/p>\n

JPY & Gold Rally<\/strong><\/b><\/h2>\n

Safe havens have started the day on a strong footing in light of the sell-off in equities over the last 24 hours.\u00a0Both the Japanese yen and gold have been higher against USD, which came under pressure in response to manufacturing data weakness.<\/strong><\/b>\u00a0USDJPY trades 109.03 last, turning back down towards the 108.84 level. XAUUSD trades 1464.32, still well below the 1500 level despite the recovery so far.<\/p>

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Crude Clings On<\/strong><\/b><\/h2>\n

Crude prices have bounced over early European trading today.\u00a0Despite the move lower in risk assets and raising fears over the US\/China trade talks, crude prices have been supported by the move lower in USD<\/strong><\/b>. Later today, the API will release its inventories report for a first look at US crude levels over the last week, ahead of tomorrow\u2019s headline EIA report. Crude trades 56.30 last.<\/p>\n

Loonie Lower<\/strong><\/b><\/h2>\n

USDCAD has been lower again today though, at 1.3294, is fighting hard to recoup yesterday\u2019s losses.\u00a0The BOC meets tomorrow and while a rate cut is not the base case scenario, following the bank\u2019s warning at the last meeting, there is plenty of downside risk for CAD.<\/strong><\/b>\u00a0If the BOC doesn\u2019t cut rates, its outlook is likely to be more dovish than last time.<\/p>\n

RBA Keeps Rates on Hold<\/strong><\/b><\/h2>\n

AUDUSD is higher again today, benefiting from the weakness in USD.\u00a0The RBA kept rates on hold<\/a>\u00a0during its final meeting of the year, keeping AUD supported in the near term.<\/strong><\/b>\u00a0While concerns around the health of US\/China trade talks are hindering risk appetite, for now, AUD seems to immune to this with traders happy to bid the Aussie up. AUDUSD trades .6859 last.<\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex USD Down on Manufacturing Miss The US dollar has been under pressure over early trading on Tuesday as the reaction from yesterday\u2019s data miss continues. The\u00a0US ISM Manufacturing print\u00a0for November came in below expectations at 48.1 vs 49.2 expected.\u00a0Marking the fourth straight month in contractionary territory, the reading is a poor omen for […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-161023","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/161023","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=161023"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/161023\/revisions"}],"predecessor-version":[{"id":161035,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/161023\/revisions\/161035"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=161023"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=161023"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=161023"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}