The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
Our call for the open today currently stands at 5400, which is 26 points shy of the 61.8% retracement of the all-time high of 6851 to the GFC low of 3120. We expect resistance to kick in at this level given how it respected prior key retracement levels. Global equities are on fire right now and shorting has been painful. An open at 5400 would mean the index has gained 282 points or 5.5% since the pivot low on October 9. It will also be up for a seventh day.
The USD was sold heavily in US trade after the US non-farm payrolls came out lower than expected. AUD/USD has now retraced 50% of the falls from the April high of 1.0582 to the year’s low of 0.8848. At 11:30 today we get Q3 CPI and this could have big ramifications for the AUD. Analysts expect inflation of 1.8% on the headline print, while the RBA looks at the trimmed mean metric and that is expected to increase 2.1%, right at the bottom end of the RBA’s range. A number below 2% (trimmed mean) could send the AUD lower.
The miner should have a positive open given the moves in commodity prices and global leads. The daily MACD is about to break above the zero line, which would be positive for the stock, while traders will be keen to look out for a break of the recent high of $37.41, where it will then target the year’s high of $39.34.
Traders will be keen to look out for the upcoming BoE minutes at 19:30, although most don’t see this being a major driver. The pair hit a high of 1.6249 in US trade, just shy of the October 1 pivot high of 1.6261. A break of this level would target 1.6389 (the year’s high).
Follow these markets on our trading platform
Our Trader Radar watchlist will be updated each morning to give you quick access to important markets. To find the watchlist:
- Log in to the trading platform.
- In the Watchlist panel, select Trader Radar from the drop-down menu. If this panel is not visible, click the Watchlist button (at the top).
- Alternatively, select Trader Radar from the Watchlist section (near the bottom left hand corner) in the Finder panel.